The US Courts have issued a new mandate concerning Grayscale’s proposal for a spot Bitcoin ETF, and this development has had a ripple effect across various markets.
Grayscale seeks to convert it into a spot Bitcoin exchange-traded fund (ETF). The legal process started gaining attention on August 29, when courts mandated the U.S. Securities and Exchange Commission (SEC) to review Grayscale’s proposal. This week, a formal mandate was issued, further emphasizing the need for this review.
This recent mandate coincides with positive performance across multiple assets. The Grayscale Bitcoin Trust (GBTC), which is at the center of these proceedings, has seen a 5.9% increase today.
The entire crypto market has been experiencing gains too. In the 24-hour period ending on August 24, Bitcoin (BTC) saw a 7.6% increase.
Bitcoin (BTC) outperformed Ethereum (ETH), which had a 3.9% increase over the same time frame, as well as the entire crypto market, which saw a 5.4% increase.
While the recent progress in spot Bitcoin ETFs has generated optimism, it’s crucial to remember that the SEC has not yet approved any such fund.
Grayscale’s legal filing compels the SEC to review the proposal, but approval is not guaranteed at this stage. There are still uncertainties surrounding the final outcome.