Greed

Based

JUST

Bitcoin

<div class="cryptonews"> 
 <p class="is-style-lead">Grayscale’s legal victory against the Securities and Exchange Commission (SEC) renews <a rel="dofollow" title="optimism" href="https://thebittimes.com/tag/optimism.html">optimism</a> for a US Bitcoin exchange-traded fund (ETF), boosting trading, investor <a rel="dofollow" title="sentiment" href="https://thebittimes.com/tag/sentiment.html">sentiment</a>, and overall financial <a rel="dofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a>s.</p> 
 <p>The crypto and wider crypto-related stock markets are relatively firm hours after Grayscale’s win against the Securities and Exchange Commission (SEC) at the District Court of Colombia. </p> 
 <p>On Aug. 29, a trio of federal judges in Washington, effectively overturned the SEC’s decision to block Grayscale’s sport Bitcoin ETF rollout. With this landmark victory, the <a rel="dofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> community senses that the first-ever Bitcoin ETF in the US is imminent, and it has triggered cascading impacts on <a rel="dofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> <a rel="dofollow" title="sentiment" href="https://thebittimes.com/tag/sentiment.html">sentiment</a> and dynamics.</p> 
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper"> 
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
    <p lang="en" dir="ltr"> JUST IN <br><br>The D.C. Circuit ruled in favor of @Grayscale in our lawsuit challenging the SEC's decision to deny $GBTC's conversion to an ETF!<br><br>Thank you to everyone who has been on this journey with us, especially our investors. We are grateful for your support and…</p>— Sonnenshein (@Sonnenshein) August 29, 2023
   </blockquote> 
  </div>
 </figure> 
 <h2 class="wp-block-heading" id="bitcoin-market-sentiment-improving">Bitcoin market sentiment improving</h2> 
 <p>Shortly after the announcement, Bitcoin trading volume skyrocketed by 44%. More than 37,680 BTC was taken off exchanges on Aug. 29, suggesting that some investors are cashing-in on short-term profits. </p> 
 <p>BTC price also spiked by 5% within an hour of the ruling.&nbsp;</p> 
 <figure class="wp-block-image size-full">
  <img decoding="async" width="752" height="264" src="https://cdn.thebittimes.com/images/2023/08/31/c1f4cd1e9de796572ac44515f0fa0b1a.webp" alt="Grayscale’s Bitcoin ETF optimism bolsters crypto market sentiment - 1" class="wp-image-14189904">
 </figure> 
 <p>There was also a notable change in the Bitcoin Fear &amp; Greed index. </p> 
 <p>For much of August, the Index had been firmly entrenched in ‘fear’ territory, reflecting heightened investor anxiety. After the court’s ruling, the index switched to “neutral,” signifying improving market sentiment.</p> 
 <figure class="wp-block-image size-full is-resized">
  <img decoding="async" src="https://cdn.thebittimes.com/images/2023/08/31/257fdfe818f039071a267a2208ae8bd9.webp" alt="Bitcoin fear and greed index" class="wp-image-14189906" style="width: 100%;height:296px" width="647" height="296">
 </figure> 
 <h2 class="wp-block-heading" id="gbtc-discount-falling">GBTC discount falling</h2> 
 <p>Grayscale’s Bitcoin Trust (GBTC) also benefited. </p> 
 <p>The trust had been trading at a significant discount to its net asset value (NAV), printing a 25% discount just a day before the ruling. Following the judge’s decision, the discount fell to 18% and then to 17% in the New York session. This is a significant change from a 45% discount recorded early this year. </p> 
 <p>This decrease indicates growing investor confidence in Grayscale’s financial instruments.&nbsp;</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> US congressman urges Gensler’s SEC exit amid Grayscale ruling 
 </div> 
 <p>COIN, the share of Coinbase, a custodial partner in several other ETF applications, also rose 15%. Given its role in the crypto ETF landscape, this uptick indicates the market’s bullish stance on the exchange’s prospects.</p> 
 <h2 class="wp-block-heading" id="when-bitcoin-etf">When Bitcoin ETF?</h2> 
 <p>Though the ruling is a setback to the SEC, it doesn’t automatically greenlight the launch of a spot Bitcoin ETF. The regulatory body announced that it’s reviewing the court’s decision, while Grayscale is closely examining the opinion’s details. </p> 
 <p>Michael Sonnenshein, Grayscale’s CEO, expressed optimism but noted that the company has not received any communication from the SEC.</p> 
 <p>This legal development serves as a potential inflection point, challenging the SEC’s longstanding reticence toward approving <a rel="dofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency-based financial products. </p> 
 <p>However, despite the upward market movements and the optimistic tones from industry leaders, it’s essential to remember that regulatory attitudes can still pose challenges. </p> 
 <p>Based on Sonnenshein’s views, it appears that people in the industry feel the SEC might struggle to justify rejecting Bitcoin ETFs.</p> 
 <blockquote class="wp-block-quote"> 
  <p>“There really shouldn’t be any further grounds like the SEC has been relying on to continue denying these types of products from coming to market.”</p> <cite>Michael Sonnenshein told Bloomberg </cite>
 </blockquote> 
 <p>This pivotal moment in crypto regulation could well serve as a precedent, opening the gates for other similar financial instruments to gain regulatory acceptance. </p> 
 <p>The SEC is yet to rule on five other pending ETF applications, with all of them having a deadline before the upcoming Labor-day Weekend. </p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> EC to rule on five Bitcoin ETFs before Labor Day weekend 
 </div> <span class="google-news-banner__label">Follow Us on Google News</span> 
</div> 
<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/grayscale-s-bitcoin-etf-optimism-bolsters-crypto-market-sentiment-tbt61012.html">https://thebittimes.com/grayscale-s-bitcoin-etf-optimism-bolsters-crypto-market-sentiment-tbt61012.html</a></p>

Grayscale’s Bitcoin ETF optimism bolsters crypto market sentiment

Table of Contents

TheBitTimes

Other articles published on Aug 30, 2023

Make profits without selling; the concept of staking

Coinbase stock surges after favorable federal ruling for Grayscale

Grayscale victory over SEC saves the day for Bitcoin

DOJ Asks Court to Reject Bankman-Fried's Planned Defense, Labeling it "Irrelevant"

Worldcoin’s Quest for Transparency Raises Alarming Privacy Concerns Globally

Bitcoin Faces Bearish Activity At $28K As Whales Eye Profits – Will BTC Price Trigger A Wave Of S...

Join our free newsletter for daily crypto updates!