The crypto community is rejoicing over Grayscale’s recent win over the SEC to have a spot Bitcoin ETF. The markets have reacted favourably to this development with prices going up about 5% across the board before settling down to prior levels.
But what is this victory about actually? Does this mean the spot Bitcoin ETF will soon be available? Read on to find out.
Background
Grayscale already has an approved Bitcoin ETF but that was based on Bitcoin Futures. They wanted to convert this product into a spot Bitcoin ETF but was blocked by the SEC. Grayscale fought back by suing the SEC in June 2022.
The Case
The SEC had not approved Grayscale’s application for a spot Bitcoin ETF because they were worried about market manipulation once this ETF is approved.
Grayscale argued that the SEC had already approved an ETF for Bitcoin Futures but are now blocking an ETF that tracks Bitcoin directly.
The court of appeals this week ruled in favour of Grayscale.
Is This The Ultimate Sign of Victory?
Short Answer: No.
Although the court of appeals had ruled for the SEC to re look at their rejection of Grayscale’s application, the SEC is still not obligated to approve the application. This is something that a lot of people may not have realised.
Having said that, this court victory paves the way for a more likely approval of the application. If Grayscale did not win, it would not have boded well for the industry. With this win, it may just be a matter of time before spot ETF’s for crypto become mainstream. This will make the barrier for entry to crypto investing a lot lower, which in turn will lead to adaptability and crypto price increases.
In summary, it is a key victories battle but is not yet the end of the war. Hopefully, this legal victory will be the precedent for good things to come in the crypto space.
How Does This Affect Me as a Cardano Investor?
If you have ever looked at crypto price charts before and compared each coin with each other, you will notice one pattern. In general, the entire crypto space rises and falls together. There will be occasional outliers if there are any major developments to any coin, but majority would move together.
Since Bitcoin has the biggest market capitalisation among all coins, any movement to it affects all coins. As they say, a rising tide lifts all boats. Therefore, even if you do not invest in Bitcoin, it is still important to know what is happening to it in order to be prepared to make investment decisions if needed.
In other news, this month we are donating to Swim For Hope. They are a charity organization raising funds for children with disadvantaged backgrounds, youth-at-risk, troubled families, vulnerable seniors and individuals with counselling and mental health needs.
We continue to donate despite not earning anything in recent months because we believe that supporting the charities that we select will give hope to others who are less privileged.
WISH Pool is the creator of Cardano SPOT Check, an online resource for Cardano Stake Pool Operators for maintaining their nodes (http://SPOTCheck.Blockchainlens.Org) . We were a recipient of the IOG delegation in 2021 and the Cardanoh Foundation delegation in 2022. If you like this article, we greatly appreciate if you will delegate your ADA to WISH Pool. You will be earning interest rewards while helping the lives of disadvantaged children. This is because we pledge to give at least 10% of our own profit to educational charities so that successful students can help get their families out of poverty. Let’s help grow the community together!
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