The U.S. Securities and Exchange Commission (SEC) will reportedly not appeal the court decision that favored Grayscale Investments, requiring the SEC to review the firm's spot Bitcoin exchange-traded fund (ETF) application. Bloomberg analysts expect the SEC not to appeal to the Supreme Court, but this does not guarantee approval of Grayscale's application.

Crypto traders are hopeful that the approval of a spot bitcoin ETF will revive the market. Despite ongoing geopolitical conflicts, major tokens like XRP, Solana's SOL, and BNB Chain's BNB have stabilized after a week-long drop. Analysts believe that the recent slump in crypto markets is due to rising oil prices and a drop in traditional equities, which could impact international trade. Bitcoin is currently hovering just above $26,800 after a 3% loss in the past week, while ether (ETH) is trading over $1,500 after a 5% weekly hit. Traders are eagerly awaiting the approval of a spot bitcoin ETF in the U.S. as they expect it to increase institutional demand and bring in new money.

The United States Securities and Exchange Commission (SEC) has until October 13 to appeal a court decision in favor of Grayscale Investments, which would force the regulator to review the fund manager's application for a spot Bitcoin fund. While an appeal is unlikely, analysts suggest the SEC could still find ways to delay approval of Grayscale's spot Bitcoin ETF conversion.

Nate Geraci, the president of ETFStore, shared data showing that the discount rate of Grayscale Bitcoin Trust Fund (GBTC) has narrowed significantly from about 43% in June to a "more optimistic" 16.5%. This indicator fluctuation is widely regarded as a signal of changes in the market's confidence in the approval of spot Bitcoin ETFs. Due to the lack of ETF options, many people choose GBTC as a channel to obtain exposure to Bitcoin. However, the significant discount of GBTC is caused by multiple factors. 

The US Securities and Exchange Commission (SEC) has consistently rejected applications for a spot Bitcoin Exchange Traded Fund (ETF) due to concerns about market manipulation and liquidity. The SEC requires a "surveillance-sharing agreement" with a regulated market of considerable scale for a Bitcoin trust sponsor to be approved.

Former BlackRock Managing Director and current CEO of MarketVector Indexes, Steven Schoenfield, stated at the CCData Digital Asset Summit in London that the US Securities and Exchange Commission (SEC) will need "three to six months" to approve a Bitcoin spot ETF. Schoenfield said, "I think the SEC may approve all ETF applications at the same time. They don't want to give anyone an advantage. They haven't completely rejected any on the entire list, but have sought opinions. This is a small but significant step forward."

Volatility Shares has withdrawn its application for an Ethereum futures ETF. Justin Young, co-founder of Volatility Shares, stated that "we don't see an opportunity at this point in time." When asked if the company still plans to launch an Ethereum futures ETF later on, Young said they will continue to apply, but the timing is yet to be determined.

The US Securities and Exchange Commission (SEC) stated on Thursday that it is launching additional procedures to determine whether the proposed spot Bitcoin ETFs by BlackRock, ProShares, Valkyrie, and Bitwise should be approved or denied, delaying the ongoing review process.

Bloomberg analyst James Seyffart wrote on X platform that the US SEC has officially received applications for Franklin Templeton's spot Bitcoin ETF, Hashdex Bitcoin ETF, and Ethereum ETF, and listed them on its official website. Seyffart said that it usually takes about a week from submitting Form 19b-4 to the SEC accepting the application, but the SEC's quick acceptance of the application this time may be due to concerns about the US government shutdown. Yesterday, Franklin Templeton submitted Form 19b-4 for the Bitcoin ETF, and the SEC will initiate the official review process for the ETF after receiving the form.

Several Republican and Democratic lawmakers sent a letter to urge Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC), to approve the listing of a physically-backed Bitcoin exchange-traded fund (ETF), stating that a regulated Bitcoin ETF will make Bitcoin trading more transparent and secure, thereby enhancing investor protection. The lawmakers said, "Congress has a responsibility to ensure that the SEC approves investment products that meet congressional requirements.