Bitcoin ETF Farce: Why Gensler Is 'Cautious' About GBTC?

In a recent interview with Bloomberg, SEC Chairman Gary Gensler took a cautious stance on the state of the Grayscale Bitcoin Trust (GBTC) and other spot Bitcoin exchange-traded funds. This has sparked more speculation among market watchers.
Legal experts, including financial lawyer Scott Johnsson, analyzed the potential impact of the recent DC Circuit ruling and delved into potential strategic moves Grayscale could take.

Analyze diving
Following the DC Circuit ruling, Johnsson criticized the legal complexity of the GBTC's position. He pointed out the nuances of the word "vacated" and its potential intersection with the SEC's statutory timeline.
Given these intricacies, it is still possible that the GBTC will be "deemed approved" in the absence of a lawful veto order. This is far from a clear victory.
Taking advantage of this potential interpretation, Grayscale's lawyers have made their position clear to the SEC, urging the committee to acknowledge their previous filing.
With the legal landscape still unclear, Johnson speculates that Grayscale may use the debate as a bargaining chip in ongoing negotiations with the SEC, though the path of least resistance is likely to be improvement.

Gensler's "cautious" response
When Gensler was recently investigated about the state of GBTC and other spot Bitcoin ETFs, his answer was noticeably cautious.
Jensler did acknowledge that agency staff were carefully reviewing multiple documents, but he did not disclose any specific details about the matter.
In the aforementioned conversation with Bloomberg Television, Jensler did not predict the regulator's next move, stressing that he would not "prejudge" the outcome.
In a significant non-commentary, Gensler declined to spell out what the SEC is about to do in the case against Grayscale, especially after the agency chose not to challenge last month's court ruling.

(Transferred from U Today)