Crypto assets witnessed a significant surge on Tuesday, following a pivotal US court decision that paves the way for the country's first bitcoin exchange-traded fund (ETF).
This landmark ruling serves as a boost for crypto enthusiasts while striking a blowto the Securities and Exchange Commission (SEC), which has been striving to regulate the growing digital currency sector.
The DC Court of Appeals, via its three-judge panel, overruled an initial SEC verdict that had previously barred Grayscale Investments from initiating a bitcoin-centric ETF. The ruling asserted that the SEC had not provided a clear reason why it initially rejected Grayscale's proposition.
Cryptocurrency prices soared on the news. Bitcoin, which has been more unstable than usual lately, climbed 7%, approaching the $28,000 mark. Coinbase, the premier publicly listed US crypto trading platform, experienced a strong 15% uptick.
The Grayscale Bitcoin Trust, the winning applicant in the case, witnessed a 17% rise. Grayscale contended that its ETF proposal had not been materially different from other bitcoin investment frameworks that had already received the SEC's green light.
What does this mean for me?
The news is a boost for US crypto investors who have championed for Bitcoin accessibility via the enhanced safeguards that come with the ETF model.
Grayscale joins a roster of companies, including financial heavyweights like BlackRock, Fidelity, and Invesco, that have vied for launching their distinct bitcoin ETFs earlier this year.
Bitcoin’s latest rise meant its value has grown by 65% this year, still far off its peak value of over $68,000 from late 2021.