In a significant turn of events for Bitcoin (BTC) and the overall market, cryptocurrency asset manager Grayscale has emerged victorious in its legal battle against the U.S. Securities and Exchange Commission (SEC).
The U.S. District of Columbia Court of Appeals has ruled in favor of Grayscale, overturning the SEC’s lawsuit and potentially bringing the company one step closer to achieving Bitcoin Spot exchange-traded fund (ETF) status.
Bitcoin Surges As Grayscale’s Legal Victory Boosts Market Sentiment
The recent ruling by the U.S. District of Columbia Court of Appeals has dealt a significant blow to the SEC’s efforts to impede Grayscale’s progress in establishing a Bitcoin spot ETF.
While this decision does not automatically convert Grayscale’s flagship product, the Grayscale Bitcoin Trust (GBTC), into a Spot ETF, it undoubtedly marks a crucial milestone toward achieving that goal.
James Seyffart, Bloomberg’s renowned ETF expert, emphasizes that this legal triumph for Grayscale brings the company closer to attaining ETF status for Bitcoin. The court’s decision to vacate the SEC’s denial of GBTC’s conversion into an ETF opens doors for further discussions and advancements in the cryptocurrency market.
As a result, Bitcoin has experienced a notable surge of over 4%, currently trading at $27,300, slightly above its 200-day Moving Average (MA). Initially, there were concerns that the MA could hinder Bitcoin’s recovery from recent setbacks.
However, in light of the recent developments regarding Grayscale’s legal victory, BTC effortlessly surpassed the $27,000 mark and briefly reached $27,500.
To sustain its recovery, Bitcoin must maintain the $27,000 level and avoid falling below the moving average once again. Establishing the MA as a new support level would safeguard against short-term price declines.
Furthermore, it would position the cryptocurrency favorably for another attempt to overcome the resistance at $28,000, should it fail to breach this barrier in its initial efforts.
This triumph for Grayscale against the U.S. regulatory bodies represents a significant victory for the entire cryptocurrency market, which has been grappling with an ongoing crackdown by regulatory authorities.
The outcome of this legal battle sets a positive precedent that could reignite confidence in the market and reverse the recent trend of liquidity outflows.