Bitcoin Surges 7% Following SEC Loss in Grayscale Lawsuit
Bitcoin experienced a significant price surge on Tuesday after the United States Court of Appeals for the District of Columbia ruled in favor of the cryptocurrency investment fund Grayscale. The fund had accused the U.S. Securities and Exchange Commission (SEC) of wrongfully denying its application to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF) – a fund traded on an exchange that exclusively comprises Bitcoin.
According to data from Coin Metrics, Bitcoin’s price jumped 7.15% to $27,851.82 after the court’s decision was announced. Following Bitcoin’s upward movement, prices of other cryptocurrencies and stocks of cryptocurrency-related companies also saw gains.
“The Commission failed to adequately explain why it approved the listing of two Bitcoin futures ETPs but not the proposed Grayscale Bitcoin ETP,” the court ruling stated. “In the absence of a coherent explanation, such disparate treatment of similar products is unlawful. Therefore, we grant Grayscale’s petition for review and vacate the Commission’s order.”
As a result of this court decision, the regulator is now required to re-evaluate Grayscale’s application for creating a Bitcoin ETP. CNBC highlighted that this court ruling increases the likelihood of the SEC approving similar applications submitted by other cryptocurrency companies such as BlackRock, Fidelity, WisdomTree, VanEck, Invesco, and others.
- I'm Vasyl Kolomiiets, a seasoned tech journalist regularly contributing to global publications. Having a profound background in information technologies, I seamlessly blended my technical expertise with my passion for writing, venturing into technology journalism. I've covered a wide range of topics including cutting-edge developments and their impacts on society, contributing to leading tech platforms.
- Troubleshooting15/11/2023Intel Fixes Critical Vulnerability Affecting All Processors – CVE-2023-23583
- Business15/11/2023Google Pays $8 Billion to Samsung for Default ‘Play Market’ and Search in Galaxy Devices
- Technology04/11/2023North Korea Upgrades Mobile Networks with Huawei Equipment Imports
- Technology03/11/2023Chinese Scientists Invent Passive Saltwater Cooler, Boosts CPU Speed by a Third