Grayscale wins case against SEC over spot Bitcoin ETF; What it means for BTC?
The Federal Court ruled favorably on Grayscale’s petition to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. This news caused Bitcoin’s price to immediately increase by over 5% and resulted in over $30 million in liquidations in just 30 minutes.
- The SEC must issue another order within 45 days, but this does not guarantee approval of the Grayscale spot Bitcoin ETF.
- While the conversion is not automatic, it brings the ETF one step closer to approval.
- Bitcoin’s price reacted positively to the ruling, reaching $27,706 and registering a 6.07% gain.
- Over $30 million in Bitcoin short positions were liquidated in less than 30 minutes.
- This positive news triggered a predicted short squeeze, potentially driving the BTC price to $28,300.
It remains to be seen how further market news and updates will impact Bitcoin’s future trend after reaching its current range’s highs.
Hot Take: The Federal Court ruling in favor of Grayscale’s petition is a significant development for the crypto industry, as it brings the possibility of a spot Bitcoin ETF one step closer. The positive market reaction, with Bitcoin’s price increasing and short position liquidations, indicates optimism among investors. However, it is important to note that investing in cryptocurrencies is speculative and carries risks. Stay informed and cautious when making investment decisions.
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