The blockchain world witnessed a major development as the DC Circuit Court of Appeals overturned the Securities and Exchange Commission’s (SEC) denial of Grayscale’s proposal to convert its popular Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The court deemed the SEC’s denial as arbitrary and capricious, pointing out its failure to explain the differing treatment of similar products.
While this ruling doesn’t automatically convert GBTC into a spot Bitcoin ETF, it certainly brings the possibility closer. The order has been sent back to the SEC, which now has 45 days to file for an en banc hearing with all 17 judges. Interestingly, the SEC did not dispute the evidence showing a correlation between spot and future markets for Bitcoin.
As news of the court ruling broke, the price of GBTC surged by over 19%, reflecting the market’s optimism about the potential conversion. Bitcoin itself experienced a rise above $5,000, signaling the positive sentiment surrounding this development.
In contrast, other major cryptocurrencies had a relatively weak showing, with only a modest increase observed in the global crypto market cap. Bitcoin’s value fell below $26,000 and is predicted to continue declining. However, there was a glimmer of hope in the Polkadot ecosystem, which witnessed a significant surge in trading volume and a 3% bounce in the past 24 hours.
Polkadot, a top-performing crypto asset with a market cap exceeding $5.5 billion, has become an attractive contender in the rapidly evolving DeFi race. Its ecosystem has made notable advancements in its staking mechanism and witnessed high levels of development activity, leading to increasing adoption and innovation.
Furthermore, Launchpad XYZ, a project that offers various tools for gaining a competitive edge in the Web3 world, showcased bullish strength by raising close to $1.5 million in its ICO. The project gained recognition and successfully sold out its presale tokens, even offering a limited-time 20% bonus to boost user adoption.
In a separate but equally significant development, Ripple, a prominent global payments network, announced plans to host a celebratory party in New York City on September 29 to mark its recent victory against the SEC. This win is not only seen as a milestone for Ripple but also for the broader cryptocurrency industry in terms of regulatory clarity. Despite the SEC’s appeal against the ruling, Ripple’s native cryptocurrency, XRP, has remained stable.
Overall, the recent ruling by the DC Circuit Court of Appeals in favor of Grayscale’s GBTC proposal and Ripple’s legal victory against the SEC signify positive strides in the blockchain and cryptocurrency industry. These developments bring hope for increased regulatory clarity and pave the way for further innovation and adoption in this rapidly evolving space.