BREAKING: Grayscale Wins Their Lawsuit Against SEC
The DC court of appeals officially ruled in favor of Grayscale in their lawsuit challenging the SEC's decision to deny GBTC's conversion to an ETF.
The United States may as well be on the way to getting its first spot Bitcoin ETF after the recent ruling to review SEC’s rejection of converting Grayscale Bitcoin Trust (GBTC) to an ETF.
Grayscale filled for the conversion back in October 2021, but the SEC rejected the application, stating that it failed to answer SEC’s questions about preventing market manipulation, among other issues.
This decision comes in the wake of many institutions filling applications for a spot Bitcoin ETF, including BlackRock.
This sparks considerable optimism among Bitcoin investors, who are waiting for the approval of a BTC ETF to spark a massive bull run for the flagship cryptocurrency.
READ MORE: JPMorgan Anticipates Crypto Market Recovery
GBTC has been trading at a discount to BTC for the last two and a half years. From the peak of a 50% discount, GBTC managed to reach 25% – the smallest discount since the beginning of 2022.
Market experts say that the conversion from a closed-end fund to an ETF will likely eliminate the discount entirely due to the nature of ETFs, which generally trade close to their fair value.
At the time of writing, BTC reacted positively to the news, surging more than 5.7% in the past hour and is currently trading around $27,520.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
