It is reported that the US Securities and Exchange Commission (SEC) has decided not to appeal the recent court ruling, which overturns the decision to prevent crypto asset management company Grayscale from converting its Bitcoin into an Exchange Traded Fund (ETF). According to reports, Bitcoin (BTC) prices briefly rose to over $27000 on Friday
It is reported that the US Securities and Exchange Commission (SEC) has decided not to appeal the recent court ruling, which overturns the decision to prevent crypto asset management company Grayscale from converting its Bitcoin into an Exchange Traded Fund (ETF). According to reports, Bitcoin (BTC) prices briefly rose to over $27000 on Friday.
According to Reuters, the US Securities and Exchange Commission must file an appeal against legal losses before midnight on Friday, but has decided not to file an appeal.
As early as August, the Washington D.C. Circuit Court of Appeals ruled that the SEC's decision to reject the Grayscale ETF application must be reviewed, accusing it of being "arbitrary and inconsistent".
Although the SEC may still refuse Grayscale's ETF application for reasons different from the court ruling, the decision not to appeal indicates that the agency's determination to block Grayscale and other potential companies' spot Bitcoin ETF applications has weakened.
This is consistent with the growing view of the Bitcoin market that by early 2024, the US Securities and Exchange Commission (SEC) will approve a batch of spot Bitcoin ETFs. In June, Wall Street giants such as BlackRock, Fidelity, and Vanguard all submitted their own applications.
GBTC/BTC discount continues to narrow
Since the beginning of 2021, the Bitcoin Trust stock trading price of Grayscale, the world's largest encryption product, has been consistently lower than its net Bitcoin holdings. If converted to an ETF, an issuance/redemption model will be used to eliminate this discount. This means issuing new shares when demand increases and redeeming them when demand decreases, in order to maintain price stability and maintain parity with the value of Bitcoin. However, it is expected that Grayscale's Bitcoin Trust will soon transition to an ETF, resulting in a significant decrease in this discount in recent months. The latest discount was 16.5%, the lowest level this year, and in February, the discount was as high as 47%. Some analysts see this reduction in discount as a positive signal in the Bitcoin market, indicating increasing demand.
What is the price of Bitcoin (BTC) landing on the moon?
As of Saturday morning trading, Bitcoin (BTC) prices have stabilized below $27000, roughly at the midpoint between the 50 day moving average of $26650 and the 21 day moving average of $27160.
The latest news from Grayscale/SEC has not received much follow-up coverage, but it highlights a bullish theme that Bitcoin investors have been very familiar with in recent months - it is expected that spot Bitcoin ETFs will be approved in the coming quarters.
Coinbase analysts recently stated that they believe that the approval of spot ETFs is currently partially reflected in Bitcoin prices, which may indicate that this theme is unlikely to provide too much momentum in the short term.
We believe that the difference in performance between Bitcoin and other tokens indicates that the potential approval of one or more spot Bitcoin ETPs has been partially reflected in prices... This makes it unclear how much Bitcoin can outperform if the US securities market performs well. "said David Duong, research director at Coinbase," The Trading Commission (SEC) will make a decision
At the same time, macro resistance remains strong.
Following the hot US inflation data this week, as the Federal Reserve is expected to raise interest rates in a longer period, the US treasury bond bond yield is still not far from the decades high hit earlier this month.
This indicates that Bitcoin may not break through the range of $25000 to $28000 in recent weeks in the near future.
But as we enter 2024, the approval of spot ETFs becomes a reality, the halving of Bitcoin and the possible rate cutting cycle of the Federal Reserve will be exciting, and Bitcoin prices are likely to soar.
The current price is below $27000, but it is still more than 60% lower than its historical high.
If based on the history of cryptocurrencies, Bitcoin may far surpass these historical highs, with a high possibility of an increase of up to 200 times.
The market is constantly changing. If you want to stay together for warmth or have any doubts, please feel free to leave a message.
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