Bitcoin rallies on the news
Bitcoin (BTC) reached its highest point in nearly two weeks on August 29 after it was announced that digital asset manager Grayscale had won a lawsuit against United States regulators.
SEC's rejection deemed "arbitrary and capricious"
The news sent shockwaves through the Bitcoin market, which had been stagnant following recent losses. The United States Court of Appeals for the District of Columbia Circuit ruled that the U.S. Securities and Exchange Commission (SEC) was wrong to reject Grayscale's application to launch a Bitcoin exchange-traded fund (ETF) based on the Bitcoin spot price. An unverified copy of the ruling circulates online, stating that the SEC's denial was "arbitrary and capricious" because it failed to provide a clear explanation for treating similar products differently.
Grayscale joins the list of firms seeking to launch a U.S. Bitcoin ETF
Grayscale is now among the companies waiting for approval from the SEC to launch the first U.S. spot Bitcoin ETF. However, the SEC has yet to approve any applications. At the time of writing, the BTC/USD price was hovering around $27,300, with a peak of $27,723 on Bitstamp.
Positive impact on existing ETF applications
The court's decision is expected to have a positive impact on other ETF applications, particularly that of BlackRock, the world's largest asset manager. Michaël van de Poppe, founder and CEO of trading firm Eight, suggested that this news could mark the beginning of a "bull cycle" for Bitcoin.
Grayscale's legal battle with the SEC
Grayscale's battle with the SEC has been long and slow-moving. The company's CEO, Michael Sonnenshein, has been adamant about converting its existing Bitcoin investment vehicle, the Grayscale Bitcoin Trust (GBTC), into an ETF. Following the court's ruling, Sonnenshein expressed gratitude for the support of Grayscale's investors and stated that their legal team is reviewing the opinion.
The GBTC share price saw a gain of over 17% on the day, reaching $20.60.
Note: This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.
