Coinbase shares jumped on Aug. 29 following reports that a federal judge ruled in Grayscale’s favor in a legal dispute with the SEC.
At the end of the trading session on Tuesday, August 29, the price of COIN reached $85.13 per share, up more than 15% from the previous session’s closing price. Coinbase, the largest cryptocurrency exchange in the United States, has been publicly listed on Nasdaq since 2021.
On Aug. 29, a federal court ruled that the SEC did not provide consistent reasons for denying Grayscale’s request to convert its Bitcoin Trust into a traditional Bitcoin ETF.
The verdict was seen by investors as a victory for the cryptocurrency space, fueling hopes of a bitcoin ETF entering the financial sector. Among the candidates aiming to launch a bitcoin ETF, Coinbase has been selected as a potential custodian and partner to share monitoring data.
As such, the San Francisco-based company will participate in data sharing related to trading, clearing operations and customer identification. The collaboration aims to reduce the risk of market manipulation and ensure safe storage of the bitcoins that back the fund’s shares.
Bitcoin spot ETFs remain absent in the U.S. due to the SEC’s hesitation in approving them. Currently, there are only cryptocurrency ETFs linked to futures contracts in China for investors to speculate on future digital asset prices.
related: First Deadline for SEC to Approve 7 Bitcoin ETFs Comes Next Week
Nonetheless, investors are looking for an investment vehicle that provides direct exposure to Bitcoin. BlackRock, the world’s largest asset manager, joined a long line of high-profile applicants vying for SEC approval in June. CEO Larry Fink pointed to strong demand from clients for investing in cryptocurrencies.
At the time of writing, Bitcoin is trading at $27,982 per coin, up more than 7% over the past 24 hours. according to Coinmarketcap data. Still, the largest cryptocurrency by market cap is down nearly 60% from its November 2021 peak of $69,044.
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