Bitcoin’s Price Surges After US Court Approves Path To Bitcoin ETF

James S
August 29, 2023
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Bitcoin experienced a significant price surge on Tuesday following the decision by the US Court of Appeals for the DC Circuit to overturn the Securities and Exchange Commission’s denial of Grayscale’s request to convert its bitcoin trust into an ETF.

According to our Bitcoin price-tracking system, Bitcoin saw a 6.45% jump to reach $27,974 in response to the ruling. This upward movement also had a positive impact on the broader cryptocurrency market and crypto-related equities.

Bitcoin Price Chart

Grayscale and SEC Engage in Battle over ETF Approval

A landmark ruling by a three-judge appeals panel in Washington has overturned the SEC’s decision to halt Grayscale’s Bitcoin ETF. Judge Neomi Rao described the SEC’s denial as arbitrary and capricious due to its inconsistent treatment of similar products.

This long-awaited verdict comes after numerous delays, keeping the crypto community on edge. Grayscale’s pursuit of an ETF stems from the limitations of its closed-end trust structure, which currently prevents investors from redeeming shares during price drops, leading to significant discounts compared to the Bitcoin assets it holds. By transitioning to an ETF, Grayscale will be able to create and redeem shares in response to changing market demand. The move could potentially unlock around $5.7 billion from Grayscale’s $16.2 billion trust.

Grayscale’s CEO shares insight on the groundbreaking ruling.

Founder and CEO. James is an entrepreneur and crypto investor since 2017.

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