The crypto market has shuddered with fresh vigour in the preceding hour, with Bitcoin (BTC) rocketing up 5% to break beyond the $27,000 threshold. While such sudden shifts are not anomalous in the high-volatility realm of cryptocurrencies, informed observers and investors attribute this to a more substantial development: a federal appeals court’s directive to the U.S. Securities and Exchange Commission (SEC) to reassess its dismissal of Grayscale Investments’ motion to modify its Grayscale Bitcoin Trust (GBTC) into an ETF.
This successful appeal has seen a growth spurt in GBTC, surging 17%, as the gap between its market price and net asset value (NAV) dwindles from 25% to a mere 17%. This has resulted in a flurry of wagers on the possibility of an ETF alteration in the future which would effectively nullify the NAV discount.
This legal triumph may hold the keys to the introduction of a spot Bitcoin ETF in the United States. Enthusiasts and advocates of this financial instrument contend that it would encourage broader public participation in Bitcoin investment, averting the complex chore of acquiring crypto directly whilst side-stepping custodial concerns about possible crashes.
Circuit Judge Neomi Rao, articulating the D.C. Circuit Court of Appeals’ standpoint, stated federal agencies must adhere to the principle of consistency in dealing with similar cases. According to Rao, despite the SEC’s sanctioning of two Bitcoin futures funds on domestic exchanges, they inexplicably thwarted the approval of Grayscale’s Bitcoin fund.
Coinciding with this controversial court decision, crypto trading platforms, such as Coinbase, as well as mining companies like Marathon Digital and Hut 8 Mining, have also posted marked increases. Not to be outdone, altcoins such as Ether, Cardano, and Dogecoin are up by around 5% as well.
It has been reported by CoinGlass that approximately $87 million worth of short positions were liquidated in the past 24 hours, time period, with a staggering $76 million coming just after this morning’s announcement.
In sum, this ground-breaking development has set in motion both hopes for a more inclusive crypto market and apprehensions about possible regulatory inconsistencies. The ensuing saga promises to be riveting as it unfolds, likely to leave lasting imprints on the future of cryptocurrency investment.
Source: Coindesk
