Thursday, July 18, 2024
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The D.C. Circuit’s U.S. Court of Appeals had advised the SEC to reevaluate Grayscale Investments’ Bitcoin ETF application.

Court Strengthens Grayscale’s Position in ETF Battle

In a noteworthy twist, the U.S. Court of Appeals for the D.C. Circuit prompted the SEC to reexamine Grayscale’s spot Bitcoin ETF request. This aligns with a prior decision emphasizing the likeness between Grayscale’s offering and other approved Bitcoin futures ETFs. The court’s statement bolsters Grayscale’s stance, emphasizing its potential for spotting market fraud.

Upon the anticipated court order—given the SEC didn’t contest a previous August decision—Grayscale responded promptly. They submitted a revised proposal, intending to convert their popular GBTC fund into a full-fledged ETF. 

Further fueling their initiative, Grayscale opted for a quicker S-3 filing, diverging from the standard S-1 for new shares. This hints at their urgency to fast-track approval. They’re also prepping to list on NYSE Arca, with relevant paperwork already in the works.

While the court’s directive is strong, the SEC’s final decision remains uncertain. They’re known for their thorough vetting, and new reasons for rejection could emerge, leaving the market and investors on edge.

BlackRock and Fidelity Join the Race for Bitcoin ETFs

Meanwhile, giants like BlackRock and Fidelity also seek the SEC’s nod for their Bitcoin ETFs. SEC’s Gary Gensler acknowledged receiving several applications but didn’t specifically address Grayscale’s bid. He emphasized the SEC’s commitment to an exhaustive review.

This influx of requests reflects growing interest in such financial tools. However, it also pressures the SEC, pushing them to sift through intricate filings while balancing market progress and consumer safety.

Bitcoin Hits $35K: A Whirlwind of Trading and ETF Excitement

Monday saw Bitcoin’s price reaching a notable $35,000, marking its first instance since May 2022. This surge is closely linked to rising optimism about potential Bitcoin ETF endorsements and a marked increase in trading volumes.

The BTC Price Jump

Bitcoin commenced its ascent on Oct. 23, scaling more than 10% from its previous position at $31,000 to surpass $34,000, as per TradingView insights. Not stopping there, in less than two hours, Bitcoin touched a high of $35,300. Currently, it’s valued at $34,550.

The anticipation surrounding possible spot ETF approvals and enhanced trading volume is driving Bitcoin’s price spike. BlackRock’s impending spot Bitcoin ETF is a significant catalyst.

Notably, Scott Johnson, via an X post on Oct. 23, hinted that the launch of BlackRock’s spot Bitcoin ETF could be just around the corner given their newly acquired “CUSIP” license. Eric Balchunas from Bloomberg echoed this sentiment, suggesting this development is a part of the larger ETF rollout, with seeding, a step that kickstarts the ETF, soon to follow.

Coinciding with Bitcoin’s price hike is a remarkable boost in spot trading volumes. Data from CoinMarketCap reveals a staggering 241% spike in spot trading, with volumes crossing $35 billion within the last 24 hours.

Bitcoin wasn’t the sole beneficiary of this bullish wave. Ethereum’s Ether climbed 7%, while Solana witnessed an 11% surge. Similarly, Dogecoin and Cardano marked gains of 8% and 5% respectively.

The sudden rise elicited varied reactions, with Autism Capital, an independent journalist, taking to social media to voice their surprise, asking their substantial follower base, “what the heck just happened?”

Regardless of the astonishment, current market conditions seem conducive for this price escalation. As per Coinshares data, the digital asset arena has seen consistent inflows for four successive weeks, signaling a promising backdrop for the crypto world.

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Johnathan DoeCoin

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