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

Grayscale wins case against SEC over spot Bitcoin ETF; What it means for BTC?
Federal Court judgment “On Petition for Review of an Order of the SEC”. Source: Document

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.

Grayscale wins case against SEC over spot Bitcoin ETF; What it means for BTC?
BTC 1-day price chart. Source: Finbold

Coinglass account on X reported a total liquidation superior to $30 million in Bitcoin short positions, in less than 30 minutes. Making it over $1 million per minute losses for BTC ‘bears’.

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.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

The post Grayscale wins case against SEC over spot Bitcoin ETF; What it means for BTC? appeared first on Finbold.

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Dennis is a business and financial writer, who had spent almost his entire life independently reporting on different business ventures with major impact on the US and global economy. Dennis places a special focus on examining tech stocks, biotech stocks all while investing a great part of his early hours to researching and writing on the companies in the US markets. Dennis has 15+ years of experience in financial markets.