The Federal Court ruled (August 29) favorably on Grayscale’s petition — that their request to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF — must be reviewed by the SEC. Bitcoin (BTC) price immediately reacted to this news, registering gains superior to 5% just a few minutes after the ruling, causing over $30 million in liquidations in 30 minutes.
“The denial of Grayscale’s proposal was arbitrary and capricious because the SEC failed to explain its different treatment of similar products. We therefore grant Grayscale’s petition and vacate the order.”
— RAO, Circuit Judge
The ETF expert James Seyffart explains that now, the SEC has to issue another order with a deadline of 45 days, but this does not mean that the Grayscale spot Bitcoin ETF will be approved.
“This does not mean GBTC is automatically converting into an ETF, but it certainly brings things one step closer.”
— James Seyffart
Bitcoin price analysis
Meanwhile, Bitcoin is priced at $27,706 by press time, registering gains of 6.07% on the day, after leaving the price consolidation zone between $25,800 and $26,200, as an immediate reaction to the Federal Court ruling.
Interestingly, this positive news triggered the predicted short squeeze for this week, covered by Finbold on August 28. The above projection could drive the BTC price to $28,300. Further market news and updates will have an important role in defining the following trend after Bitcoin reaches its current range’s highs at mentioned prices.
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