Grayscale Wins Over SEC in Revoking GBTC Order
The United States Court of Appeals for the District of Columbia Circuit granted Grayscale a significant victory by overturning the SEC’s order to turn GBTC into a Bitcoin Spot ETF. This win was predicted by crypto stakeholders before the court ruling.
Main Points:
- Crypto lawyer John Deaton and Bloomberg analyst Elliot Z. Stein both predicted Grayscale’s victory over the SEC.
- Deaton believed the SEC would lose because they couldn’t reasonably explain why they approved a futures ETF but not a spot ETF.
- During an oral argument, Grayscale argued that the SEC’s decision was arbitrary, and the judges seemed to agree.
- Grayscale’s victory had a significant effect on the crypto market, leading to over $95 million in liquidations within the first few hours.
- Short traders bore the brunt of the losses, with Bitcoin and Ethereum accounting for the majority of liquidations.
Hot Take:
Grayscale’s win against the SEC is a significant milestone for the crypto industry. It highlights the importance of challenging regulatory decisions and sets a precedent for future cases. The market reaction to the victory demonstrates the influence of regulatory decisions on investor sentiment and highlights the need for clear and consistent regulations in the crypto space.
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