Cryptos Rally As U.S. Court Rules Against SEC In Grayscale Bitcoin ETF Dispute

Cryptocurrencies surged more than 4 percent in the past 24 hours amidst euphoria following Grayscale Investments, LLC securing a court win against the SEC’s earlier order denying approval for Bitcoin Spot ETF product. Bitcoin’s price touched a high of $28,089.34 amidst the U.S. Court of Appeals for the District of Colombia Circuit releasing a court opinion on the case.

The dispute relates to an application placed by Grayscale Investments to the SEC to convert its spot Grayscale Bitcoin Trust (GBTC) into an ETF, listed on the New York Stock Exchange’s Arca market. Even though the SEC had earlier approved Bitcoin Futures ETF products, it denied approval for GBTC claiming that it was not designed to prevent fraudulent and manipulative acts and practices.

Grayscale challenged SEC’s order stating that two similar products received differing regulatory treatment. It also advanced substantial evidence that its proposed bitcoin product was similar to the Bitcoin futures products approved by the SEC and therefore should have received the same regulatory treatment.

In the Opinion filed on the matter, Circuit Judge Rao held that agencies must treat like cases alike. The court ruling further stated that the denial of Grayscale’s proposal was arbitrary and capricious because the SEC failed to explain its different treatment of similar products.

The move is particularly significant as several asset managers including BlackRock and Fidelity have recently filed for spot Bitcoin ETF product approval and are awaiting the SEC’s decision on the matter.

Overall crypto market capitalization surged to $1.09 trillion, from $1.05 trillion a day earlier.

Bitcoin (BTC) rallied 5.1 percent and is currently trading at $27,349.16. Year-to-date gains surged to almost 65 percent, from 56 percent a day earlier. Bitcoin’s crypto market dominance also increased to 48.86 percent, from 48.29 percent a day earlier.

Grayscale Bitcoin Trust (GBTC) had closed almost 17 percent higher in Tuesday’s trading.

Ethereum too added 4.4 percent over the past 24 hours to trade at $1,717.44. Ether’s year-to-date gains exceed 43 percent, versus 37 percent a day earlier. Ethereum also managed to increase its crypto market dominance to 18.93 percent, rising from 18.85 percent a day earlier.

9th ranked Solana (SOL) is the best price performer among the top 10 cryptocurrencies, surging 5.8 percent overnight. SOL’s gains exceed that of BTC.

10th ranked TRON (TRX) is trading in the overnight red zone despite the broad-based market euphoria.

Down the hierarchy, 47th ranked Stacks (STX) topped with overnight gains exceeding 18 percent in the past 24 hours. 11th ranked Toncoin (TON) added more than 15 percent, followed by 18th ranked Bitcoin Cash (BCH) that gained 11.7 percent.

98th ranked Astar (ASTR), 27th ranked Monero (XMR) and 93rd ranked dydx (DYDX) declined more than 1 percent despite the overall market strength.

4th ranked BNB (BNB) is the highest ranking crypto to trade with year-to-date losses. BNB has shed 7.9 percent in 2023.

Meanwhile, the CoinShares’ Digital Asset Fund Flows Weekly report on institutional investments showed outflows of $168 million for the week ended August 25, the largest outflow since the regulatory crackdown on crypto in March 2023. Bitcoin products constituted $149.4 million of the outflows. Ethereum recorded outflows of $16.8 million. Short Bitcoin products recorded outflows of $4 million.

The country-wise analysis shows outflows of $68 million in Germany and $61.2 million in Canada. U.S. recorded outflows of $19.5 million, followed by Switzerland that recorded outflows of close to $16.7 million. Cumulative AUM stood at $31.95 billion.

For More Cryptocurrency News, visit rttnews.com

Source: Read Full Article