DL News reports that after Grayscale won its Tuesday lawsuit against the US Securities and Exchange Commission (SEC), the cryptocurrency markets experienced a strong uptick. The prospective approval of the spot Bitcoin ETF bolstered Bitcoin, Ethereum, and the overall crypto market throughout the day. Currently, market participants are analysing the news of the decision and its effects.
Grayscale’s victory in the SEC appeal sparked a boom in the cryptocurrency market, pushing the price of Bitcoin beyond $28,000 on some exchanges like Coinbase. Before prices eventually fell, Ethereum and other altcoins also saw an increase. This significant choice has improved the chances of approving a spot Bitcoin ETF, which has been under development for more than ten years.
A spot Bitcoin ETF, in the opinion of many crypto enthusiasts, could greatly benefit the sector. This view is not universal, according to analysts at JPMorgan, who claim it is “unlikely to be a game changer for crypto markets.” The analysts note that there are comparable products available in other areas, such as Canada and Europe, but that there has been little demand in these products, which hasn’t had a big impact on the price of bitcoin or drawn in new investors.
Despite the ambiguity around the possible effects of a spot Bitcoin ETF, the announcement of Grayscale’s victory caused Bitcoin to trade up 5.5% at roughly $27,400, even though digital asset investment products that hold Bitcoin experienced withdrawals of nearly $150 million the week before, according to CoinShares. Over the past day, Ethereum also increased by 4.6%, reaching a price exceeding $1,700. Ethereum was the only alternative currency to have meaningful outflows last week, totalling $17 million, according to CoinShares.