Benzinga - by Piero Cingari, Benzinga Staff Writer.
The Grayscale Investments Bitcoin Trust (OTCPK: GBTC) experienced a 17% surge on Tuesday following a legal victory against SEC in federal court that could pave the way for the launch of the first spot-Bitcoin ETF in the U.S.
For years, proponents of cryptocurrency have advocated for the introduction of a spot-Bitcoin ETF, and Tuesday’s announcement has been deemed a significant milestone for the industry.
If you’re exhilarated by this groundbreaking news, then you absolutely can’t afford to miss Benzinga’s Future of Digital Assets in New York City on Nov. 14, 2023. This pivotal event will feature industry game-changers and innovators discussing milestones like the Grayscale news that are shaping the future of cryptocurrency.
The trust’s exceptional performance resulted in a reduction of its price discount to its underlying Bitcoin holdings to under 17%. Earlier this year, the gap exceeded 45%, and it was around 25% just one day prior.
As indicated in the chart below, Grayscale effortlessly surpassed the resistance level of the 50-day moving average and recorded its most successful trading day since mid-July 2021. It has now gained 150% so far this year, although it remains 66% below its April 2021 highs.
The high reached in July serves as the next point of resistance, followed by the $24 mark. The latter was a key support level between February and May 2022.
Watch Ark Invest founder Cathie Wood correctly predict the SEC’s defeat in the Grayscale case in an interview with Benzinga CEO Jason Raznick that will air in full at 2 p.m. ET Wednesday, Aug. 30 on “The Raz Report”:
Read also: Bitcoin ETF Imminent? Grayscale Wins Years Long Fight Against SEC That May Open Floodgates
As celebrations over Grayscale’s legal victory unfold, Roxanna Islam, associate director of research at VettaFi, told Bloomberg the impact reverberates beyond the confines of a single entity.
“Grayscale’s win is a huge victory for all potential spot-Bitcoin ETFs — not just for Grayscale,” she said. “While we will still have to wait and see how the SEC handles its execution, it is likely that they will have to approve Grayscale’s spot ETF along with other pending spot-Bitcoin ETF filings.”
A lineup of industry giants including Bitwise, VanEck, Invesco, Fidelity and Valkyrie, among others, are all vying for their ETF applications’ green signal. According to Bloomberg, the anticipation is palpable as the Securities and Exchange Commission prepares to deliberate on a slew of filings, with a verdict expected prior to Labor Day weekend.
Now read: EXCLUSIVE: Why Does Cathie Wood Think Bitcoin Is Going To $1 Million — What Does She Know That We Don’t?
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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