Bitcoin‘s value soared on Tuesday 29th August 2023 after the U.S. Court of Appeals for the DC Circuit deemed the SEC’s denial of Grayscale’s bitcoin trust conversion into an ETF as incorrect. Bitcoin surged 6.5% to $27,683.82, uplifting both cryptocurrenciesand crypto equities.
Grayscale won its lawsuit against the SEC, which was filed after the SEC denied Grayscale’s motion to convert $GBTC (Grayscale Bitcoin Trust BTC) into a Bitcoin-backed ETF. A three-judge appeals panel overturned the SEC’s decision to deny Grayscale’s ETF proposal.
This isn’t a green light for $GBTC to automatically convert into an ETF. But the ruling is public, so it is expected to exercise some pressure on the SEC and other regulatory authorities outside the US to reconsider their position regarding Bitcoin-backed ETFs, which could open up a whole new avenue for demand in Bitcoin. Some users could feel comfortable investing in Bitcoin with a more familiar wrapper, while others would be able to incorporate Bitcoin ETFs into retirement accounts. In the US there are seven Bitcoin-backed ETF proposals awaiting a decision from the SEC – including proposals from big institutions such as $BLK (BlackRock Inc) , Fidelity, and WisdomTree – that could possibly get different treatment after this court ruling.