The Bitcoin The (BTC) price is currently rising sharply. The reason for this is most likely the victory of US wealth manager Grayscale. In June 2022, Grayscale’s application for a Bitcoin Spot Exchange Traded Fund (ETF) was approved by the US. Securities and Exchange Commission (SEC) declined. However, the US court has now overturned this rejection and restarted the approval process for the Grayscale bitcoin ETF.
SEC’s refusal to accept Bitcoin ETFs has been denied
On June 29, 2022, Grayscales submitted an application for its Bitcoin fund (GBTC). Spot ETF switch rejected. On the same day, the asset manager filed a petition with a lawsuit. After a lengthy session lasting more than a year, the Washington DC Court of Appeals decided to overturn the SEC’s challenge.
This will allow Grayscale to get its hands on the first-ever spot bitcoin ETF in the United States. A bitcoin spot ETF is a mutual fund that rewards returns based on the current price. This is what is being invested in crypto without taking custody of the tokens themselves. Instead, they own shares.
Because of the profits from the lawsuit, the Bitcoin rate an enormous and rapid increase. Before the news, bitcoin price was around $26,000. Bitcoin currently costs $27,500. In half an hour, the value of the coin increased by 5%.
Grayscale bitcoin ETF approval uncertain
Victory in the legal battle over spot bitcoin ETF Grayscale caused quite a stir. Bitcoin 24-hour trading volume is now around $16.8 billion and a 77% increase. Grayscale’s victory is expected to open the doors to a number of Bitcoin spot ETFs.
On the other hand, approval of the fund is certainly not guaranteed. Victory in the lawsuit merely means a reopening of the approval process for bitcoin spot ETF Grayscale. Whether or not he actually gets there is up to the Securities and Exchange Commission. When the scholarship fund comes crypto exchange Coinbase facilitates the ETF.