Grayscale, a cryptocurrency asset management, has won its legal fight against the U.S. Securities and Exchange Commission (SEC), a major development for Bitcoin (BTC) and the market as a whole.
The U.S. Court of Appeals for the District of Columbia found in Grayscale’s favor, dismissing the SEC’s action and perhaps moving the business closer to gaining Bitcoin Spot ETF certification.
As market confidence rises after Grayscale’s legal victory, bitcoin prices rise.
The SEC’s attempts to obstruct Grayscale’s efforts to launch a Bitcoin spot ETF were struck a major setback by a recent judgment from the U.S. District of Columbia Court of Appeals.
The Grayscale Bitcoin Trust (GBTC) is Grayscale’s flagship product, and although this move does not instantly transform GBTC into a Spot ETF, it unquestionably represents a major milestone toward that objective.
Grayscale’s court victory moves the business closer to achieving ETF designation for Bitcoin, according to James Seyffart, Bloomberg’s famous ETF expert. By overturning the SEC’s decision to prevent GBTC from being converted into an ETF, the court has paved the way for more debate and development in the cryptocurrency industry.
Since then, Bitcoin’s price has risen by more than 4%, to a current level just over its 200-day Moving Average (MA) of $27,300. There were initial worries that the MA might make Bitcoin less resilient to market fluctuations.
BTC easily topped $27,000 and temporarily touched $27,500 in light of recent events involving Grayscale’s court victory.
Bitcoin’s rebound will falter if it drops back below $27,000 and the moving average again. A fresh support level established by the MA would protect against temporary price drops.
In addition, it would put the cryptocurrency in a strong position for another try to break through the resistance at $28,000, should the first attempt fail.
The whole cryptocurrency sector, which has been battling an escalating crackdown by regulatory agencies, might take heart from Grayscale’s success over the U.S. regulatory organizations.
The successful conclusion of this case might restore investor confidence and stop the current flight of capital from the market.
Also Read: The House Committee on Financial Services claims the Federal Reserve has invented its crypto policy
