Grayscale’s Appeal Win Over the SEC Causes Bitcoin to Soar
Grayscale’s win in court against the SEC to create a Bitcoin spot ETF has led to a sharp increase in the price of Bitcoin.
Bitcoin soared in value on Tuesday after news that the DC Circuit Court of Appeals had ruled in favor of Grayscale, a cryptocurrency corporation, in its fight against the U.S. Securities and Exchange Commission (SEC) over the establishment of a Bitcoin spot ETF.
The price of Bitcoin has increased by over 5% in the past hour, from a little over $26,000 to its current level of $27,425, as measured by statistics from CoinGecko. There have been comparable increases in the price of other major cryptocurrencies during the last hour.
Except for when rumors of a spot ETF broke, the biggest cryptocurrency by market size has been sitting well this summer with unusually minimal volatility.
Today’s announcement that the SEC would not consider Grayscale’s application to list a spot Bitcoin ETF is good for investors since it suggests that such an ETF may soon be available in the United States.
After the SEC denied Grayscale’s request to transform the Bitcoin Trust into a spot Bitcoin ETF, the company filed a lawsuit against the agency last year.
The SEC has been hesitant to approve a Bitcoin ETF due to concerns about market manipulation, which is why there is currently none available in the United States. Investors are interested in such a product, despite the fact that the top regulator has a backlog of high-profile applications.
This is because it would provide conservative investors with a more secure means of exposure to the asset: By purchasing shares in a Bitcoin ETF, investors may benefit from exposure to the cryptocurrency market without the hassle of physically securing and keeping Bitcoin themselves.
After the financial powerhouse BlackRock applied to the U.S. Securities and Exchange Commission for a Bitcoin ETF in June, the price of Bitcoin soared to an all-time high of almost $31,000 per coin.