Bitcoin (BTC) traded near two-week highs on Aug. 29 following news that digital asset manager Grayscale had won a lawsuit against U.S. regulators.
SEC’s decision to reject Bitcoin ETF was ‘arbitrary and capricious’
Data from Cointelegraph Markets Pro and transaction view The immediate BTC price reaction to the event was captured, with BTC/USD up $1,700 in about 30 minutes.
The news upended the bitcoin trading environment, which has persisted after a sharp drop in mid-August.
The U.S. Securities and Exchange Commission (SEC) erred in rejecting Grayscale’s application to launch an exchange-traded fund (ETF) based on the spot price of bitcoin, a ruling by the U.S. Court of Appeals for the District of Columbia Circuit says. its foundation.
“The rejection of Grayscale’s proposal was arbitrary and capricious because the SEC failed to explain its different treatment of similar products,” an unverified copy circulated online state.
“Therefore, we grant Grayscale’s petition and rescind the order.”
As a result, Grayscale has joined a waiting list of companies looking to launch the first U.S. spot bitcoin ETF, but the SEC has yet to approve any applications.
As of this writing, BTC/USD hit $27,300 on Bitstamp and peaked at $27,723.
Data from Binance BTC/USD order book uploaded By monitoring the resource materials indicator, X covers an uptrend, with all order categories increasing buying in an illiquid market.
“6 month order book data shows thin upside liquidity, which should be easy to capitalize on to retest $30, but we haven’t seen enough sentiment to do that yet as markets worry about what will happen if BTC starts printing Lower lows,” part of an analysis released ahead of Grayscale’s announcement pointed out.
Analyst Predicts Bitcoin Price ‘Bull Cycle’ Catalyst
Michaël van de Poppe, founder and CEO of Trading Company 8, went on to respond, saying that the court’s ruling could have a positive impact on existing ETF applications, especially from the world’s largest asset manager Application from BlackRock.
Related: ‘100% Bulls Hit’ Bitcoin Metric Predicts BTC Price Floor at $23,000
“It may sound strange, but with this news, we may be on the verge of the start of a bull cycle,” he said. Summarize Send X followers in the comments section following a dedicated video update.
As Cointelegraph reports, Grayscale’s legal battle with the SEC has been long and slow, with CEO Michael Sonnenshein insisting the company won’t rest until it gets permission to convert its existing bitcoin investment vehicle, the Grayscale Bitcoin Trust (GBTC), into an ETF .
“Thank you to everyone who has been on this journey with us, especially our investors,” Sonnenshein wrote The news was posted on X after news of the SEC’s setback broke.
“We appreciate your support and encouragement. Next: Our legal team is actively reviewing the court’s opinion.”
As of this writing, GBTC stock is up more than 17% on the day to $20.60.
This article does not contain investment advice or recommendations. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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