Cryptocurrency asset manager Grayscale has achieved a significant legal victory against the U.S. Securities and Exchange Commission (SEC), impacting both Bitcoin (BTC) and the broader market.
The recent ruling by the U.S. District of Columbia Court of Appeals in favor of Grayscale has the potential to propel the company closer to securing Bitcoin Spot exchange-traded fund (ETF) status.
Grayscale’s legal win against the SEC’s lawsuit is a pivotal moment in the journey toward establishing a Bitcoin spot ETF.
Although this victory doesn’t instantly convert the Grayscale Bitcoin Trust (GBTC) into an ETF, it represents a crucial step towards that ultimate goal.
Renowned ETF expert James Seyffart of Bloomberg highlights the significance of this legal triumph for Grayscale. The court’s decision to vacate the SEC’s denial of GBTC’s ETF conversion opens up possibilities for further discussions and advancements within the cryptocurrency market.
In response to Grayscale’s legal victory, Bitcoin has surged by over 4% and is currently priced at $27,300. This surge positions Bitcoin slightly above its 200-day Moving Average (MA).
Earlier concerns about the MA hindering Bitcoin’s recovery have been quelled by this positive development.
The legal win has boosted Bitcoin’s confidence, pushing it above the $27,000 mark and briefly touching $27,500. Sustaining this upward momentum is crucial for Bitcoin to solidify its recovery.
Maintaining the $27,000 level and avoiding a dip below the moving average would establish a new support level, guarding against short-term price declines.
With the tailwind of Grayscale’s victory, Bitcoin’s sights are set on overcoming the resistance at $28,000.
