Grayscale is the largest crypto asset manager in the world. This Tuesday, he won a major victory against the United States Securities and Exchange Commission. A federal court ruled that the SEC violated U.S. law. This, by refusing the conversion of the Grayscale Bitcoin Trust (GBTC) into a Bitcoin Spot ETF.
In short
- Grayscale scores major win against SEC
- The SEC was ordered by a federal court to reconsider its decision
- Crypto markets also reacted positively to Grayscale’s victory.
Towards an approval of a Bitcoin Spot ETF?
The Grayscale Bitcoin Trust (GBTC) soars 17% on Tuesday following the SEC’s ruling in federal court. The latter would have ordered the commission to reconsider its decision against Grayscale’s Bitcoin Spot ETFs.
Indeed, the SEC refused to convert GBTC into a cash ETF. The regulator cited concerns about investor protection. According to the agency, Bitcoin Spot ETFs could be used to manipulate the price of bitcoin (BTC). She also states that they could be vulnerable to fraud.
The court has rejected these arguments, claiming that the SEC had not provided sufficient evidence to justify its refusal. To top it off, he believes the SEC is acting arbitrarily and capriciously in denying GBTC. Still, it approves other ETFs based on bitcoin futures.
SEC failure against Grayscale energizes markets
Crypto markets are reacting positively to Grayscale’s victory. To this end, the total market capitalization of the cryptocurrency market is up by $65 billion in one day. In addition, bitcoin (BTC) rebounded by more than 5% in the same period.
When in the GBTC share price, it is now close to a high of 20.56 dollars. Which also constitutes its largest increase since July 2021. Some analysts believe that the SEC could still appeal the court decision. Nevertheless, the victory from Grayscale remains a significant boost for the crypto industry.
However, the victory of Grayscale’s Bitcoin Spot ETF does not guarantee a new bull cycle for crypto markets. Analysts say the SEC may appeal the verdict. However, other factors, such as inflation and the war in Ukraine, could still weigh on the markets.
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