Grayscale Investments LLC has just edged closer to launching its Spot Bitcoin ETF in the United States, thanks to a recent court decision. A panel of three judges in Washington D.C. overturned a previous SEC ruling that had blocked the ETF tied to spot Bitcoin prices.
A Big Win for Grayscale and the Crypto Industry
This court decision marks a significant victory for not only Grayscale but also the broader cryptocurrency market. Grayscale has spent a year in the quest to launch this Spot Bitcoin ETF. Despite the SEC’s plans to challenge the court’s ruling, this win could pave the way for massive cryptocurrency adoption.
Rally in Grayscale’s Bitcoin Trust and Bitcoin Price
Grayscale’s Bitcoin trust, one of the largest of its kind, is also enjoying a windfall with a rally of more than 20%. Concurrently, the price of Bitcoin surged, trading above $27,500—an increase of nearly 7% in just one day. This upswing might make Bitcoin more attractive to large investors, especially if the Spot Bitcoin transitions into a regulated ETF.
What This Means for Future Spot Bitcoin ETFs
Given past trends, products related to cryptocurrency that are first to market usually experience rapid adoption. The SEC will likely tread carefully when considering new ETF products in the future. This recent judicial victory not only benefits Grayscale but also illuminates the path for other pending Spot Bitcoin ETF applications, such as the one from BlackRock. However, these may not integrate as quickly if Grayscale is the first to establish its ETF.
