Grayscale Investments LLC moved closer to launching a spot-based Bitcoin exchange-traded fund (ETF) in the US. A three-judge appeals panel in Washington on Tuesday overturned the decision by the US Securities and Exchange Commission to block the ETF, which would be tied to the spot Bitcoin price.
Grayscale has been pursuing the Spot Bitcoin ETF for a year. Now, with the courts on their side, this is a major win not just for Grayscale, but for all of cryptocurrency. The SEC, however, will look to fight the decision.
The Grayscale Bitcoin trust is one of the largest trusts holding Bitcoin, and its holding is also seeing a rally of over 20%.
Also Read: SEC Approval of Ethereum Futures ETF Expected in October
Bitcoin is now trading above $27,000, up nearly 7% in the past 24 hours. Large investors may now be looking into Bitcoin if Spot Bitcoin is converted into a regulated ETF. In turn, this will draw massive adoption from these financial advisors.
In the past, products linked to cryptocurrency that were first out of the gate have had massive adoption. Therefore, the SEC will want to be careful in the pipeline of new ETF products. This new court ruling will also brighten the future for other Spot Bitcoin ETF applications currently waiting, such as BlackRock. Those spot-Bitcoin ETFs, however, may not get the same quick integration as Grayscale if Grayscale establishes its own first.