- Whales & large BTC holders amass $388.3M BTC, foresee Grayscale-SEC lawsuit outcome.
- Bitcoin price rises 6%, hitting $27,409.68 due to U.S. court’s pro-Grayscale ruling.
- Ruling’s influence on pending spot BTC ETF applications sparks industry speculation.
In an exciting turn of events, whales and large Bitcoin holders have accumulated $388.3 Million worth of BTC. According to Santiments, these entities may have predicted the outcome of the Grayscale and SEC lawsuit. The entities have been immensely rewarded with a 6% rise in price.
BTC Price & Ruling
Following this news, the price of Bitcoin (BTC) has risen to $27,409.68, a 5.43% rise from before. In all this fiasco, it is important to note that the ruling from the U.S. District of Columbia Court played a crucial role. According to the court, the Securities and Exchange Commission (SEC) was wrong in selecting an application from Grayscale, which is a crypto asset manager.
Grayscale’s goal was to list an exchange-traded fund that would be able to track the price of bitcoin. The case has been supposedly watched with keen interest by other cryptocurrency and asset management companies, which have been trying to convince the SEC to approve a spot bitcoin ETF. SEC’s concern, however, was that spot BTC ETFs would be vulnerable to manipulation.
According to the court’s panel of judges, the proposed bitcoin ETF is “materially similar” to approved bitcoin futures ETFs. Moreover, both the assets – bitcoin and bitcoin futures are “closely correlated.” With these notions in consideration, the court’s ruling was the SEC’s decision was “arbitrary and capricious.” As a result, the scales tipped in favor of Grayscale.
It is pivotal to note here that several firms, including BlackRock, Fidelity, WisdomTree, and VanEck, have submitted spot ETF proposals for listing on major exchanges like Nasdaq and CBOE Global Markets. The million-dollar question still remains as to what will be the ruling’s implications for pending spot BTC ETF applications.
At this point, this notion is unclear, and this ruling does not guarantee automatic SEC approval. However, there is a possibility that the court ruling may influence the SEC’s decisions on the pending applications.
According to analyst Crypto Rover, this court ruling does not necessarily mean that Grayscale will get a Spot ETF. However, the SEC now has one of two options. It can either provide clear reasoning for its denial or move forward with its approval. Given the notion that the denial has been challenged, it is inevitable that a Bitcoin Spot ETF will be approved.
With the court’s ruling in favor of Grayscale’s proposed ETF, the uncertainty surrounding pending applications and the potential impact on the SEC’s decision-making process remains. With a robust and continued interest in the cryptocurrency industry, stakeholders are awaiting further developments.