Securities and Exchange Commission Chair Gary Gensler was mum about a potential appeal to a high profile ruling involving Grayscale Investments' attempt to convert its flagship fund into a spot bitcoin ETF, declining to comment on the matter when asked by journalists at a press conference on Friday.

The SEC has until midnight to file an appeal over the August decision that directed the regulator to re-review Grayscale's bid for a spot fund, with the court specifically addressing the SEC's differential treatment of spot bitcoin ETFs and similar funds based on futures contracts, which the regulator has approved. 

The asset management firm sued the agency last year following its rejection of the plan for the conversion of its GBTC fund. 

If the SEC does not appeal in the coming hours, the court is expected to follow with a mandate over the coming days on how its decision should be executed, which could include telling the SEC to approve Grayscale's application or to revisit the application, according to an August blog post from law firm Winston & Strawn LLP. 

However, if the SEC does appeal before midnight, that could lead to an en banc hearing, meaning a rehearing with all three judges who participated in the initial ruling. 

High profile ruling

Grayscale first brought the case against the SEC last year for the rejection of its proposal to convert its flagship fund, GBTC, into a spot bitcoin ETF. Don Verrilli, lead counsel for Grayscale, said during oral arguments in March that the SEC is contradicting itself by allowing bitcoin futures ETFs, but not a spot bitcoin ETF.

Grayscale sent a letter to the SEC last month asking to meet with regulators to discuss converting its Grayscale Bitcoin Trust into a spot bitcoin ETF. 

 "We hope you will agree that the best use of resources now is for the Commission to issue an order approving NYSE Arca’s Rule 19b-4 filing and authorize the staff to work with Grayscale and NYSE Arca to finalize the prompt listing of the Trust’s shares," lawyers for Grayscale said at the time. 

The SEC has not yet greenlit a spot bitcoin ETF, though the Grayscale ruling was seen as a positive for the slew of firms that have applied for spot bitcoin ETFs over the past few months including big names such as BlackRock and Fidelity.