- Bitcoin, Ethereum, and the broader crypto market soared following the news of Grayscale’s win on Tuesday.
- Investors have long hoped for a spot Bitcoin ETF, but the promise of such a product is widely debated.
Happy Wednesday!
A spot Bitcoin exchange-traded fund looks a lot more likely today. Crypto markets bounced following the news that digital asset manager Grayscale won its case against the US Securities and Exchange Commission on Tuesday. The rally has subdued as investors get to grips with the ruling and what it might mean.
Let’s dig in!
Grayscale wins
Grayscale won its appeal against the SEC on Tuesday, driving prices higher after a week of subdued price movement.
The victory was hailed as a “landmark decision for the whole industry,” Olta Andoni, general counsel and chief compliance officer at Enclave Markets, a crypto exchange, told DL News.
“As an attorney, I haven’t seen many District Court of Appeals rule against a regulator such as the SEC, which adds more to the importance of this holding,” she said, calling the ruling an “important step toward the approval of a spot Bitcoin ETF.
What happens next? The regulator and Grayscale will review the court’s decision and a spot Bitcoin ETF definitely hasn’t been de facto approved.
Still, prices soared on the news, with Bitcoin briefly trading above $28,000 on some venues, including Coinbase. Ethereum and altcoins also jumped, with most price moves retreating somewhat in the hours since the news.
A spot Bitcoin ETF has been more than a decade in the waiting, with many crypto enthusiasts believing it could be a massive boon for the industry. JPMorgan analysts disagreed over the summer, and said that it is “unlikely to be a game changer for crypto markets.”
Why? Well, these products exist in other regions — Canada and Europe. And interest has been meagre there, and hasn’t done much to change the price of Bitcoin or attract large swaths of new investors.
Crypto market movers
- Bitcoin is up 5.5% over the past day, trading around $27,400. Digital asset investment products investing in Bitcoin saw nearly $150 million in outflows last week, according to CoinShares.
- Ethereum is trading above $1,700, up 4.6% in the last 24 hours. “Ethereum was the only altcoin to see measurable outflows, totalling $17 million,” CoinShares noted on Tuesday.
What we’re reading
- Grayscale defeats SEC in court as ruling clears obstacle to Bitcoin ETF — DL News
- What is LlamaSwap? — DL News
Adam Morgan McCarthy is DL News’ London-based Markets Correspondent. Got a tip? Reach out at adam@dlnews.com. Story written with reporting assistance from Inbar Preiss, reach out to her at inbar@dlnews.com or on Telegram @InbarPreiss.
