Bitcoin (BTC) price is up nearly 7 percent today on the back of Grayscale’s victory in the lawsuit against the U.S. Securities and Exchange Commission (SEC).
According to the American judges, the financial regulator did not adequately explain why it rejected the major crypto asset manager’s application for a spot bitcoin exchange traded fund (ETF) or Exchange Traded Fund. As a result, bitcoin price surged 7 percent to its current level of $27,900.
Big win but not yet a bitcoin ETF
In recent months, the bitcoin price has been under significant pressure due to the macroeconomic conditions. Beginning in March 2022, the US Federal Reserve aggressively raised interest rates to curb inflation. For now, we’ll have to await the precise impact of these rate hikes on the US (and global) economy.
News of Grayscale’s win seems to ease some of that pressure. However, the ruling does not yet mean that the SEC has approved a spot Bitcoin ETF. While this is a fantastic development for Bitcoin (and for the rest of the crypto market), let’s not forget that the judge is mainly asking the SEC for clarification.
The judge believes there is insufficient justification for the rejection of Grayscale’s spot bitcoin ETF, but that does not compel the SEC to approve Grayscale’s ETF. Attorney Jake Chervinsky said the regulator can always think of another reason for a denial. Still, he calls it a rare and great victory.
1/ Grayscale’s victory over the SEC is *massive.*
It is very rare for a federal court to find that an agency has violated the APA through arbitrary and arbitrary action.
The DC Circuit has just caused the SEC a major embarrassment.
But the ETF is not yet approved 🧵
— Jake Chervinsky (@jchervinsky) August 29, 2023
Bitcoin price surges more than 7%
Currently, we are seeing the Bitcoin price increase by more than 7 percent, on some exchanges the price has already surpassed $28,000. However, this increase is mainly due to enthusiasm. First and foremost, this is a first step in the right direction, but it is not the end of this important fight.
If it can break $27,900, there is a good chance of going straight to $28,500 pic.twitter.com/86g3QkjcTx
— Nebraskangooner (@Nebraskangooner) August 29, 2023
The SEC has a few more decisions to make this week on other spot bitcoin ETF filings, such as Blackrock’s. This news could increase the chance of an approval, although the chance of a postponement still seems greater. In addition, caution remains warranted in view of a possible recession.