Finally, some good news for Bitcoin’s price. While it has only been a short run, Bitcoin has managed to rally and hit a two-week high after a court backed Grayscale’s ETF. It has been in the works for quite a while now, and after the first Bitcoin ETF went live in Europe, good news are brewing for US’ first Bitcoin ETF right now.
It’s not just a rumor, but a real thing. The SEC’s first deadlines to approve the Bitcoin ETF are coming next week. According to analysts, the SEC will approve the first batch of spot Bitcoin ETFs, but it will also most likely exercise the right to an appeal. Either way, it has managed to cause a BTC price uptick, which showed there’s still juice left even if it lasted for a short time.
The Return of Bitcoin Volatility
The volatility return is good news as Bitcoin was kind of stuck in the $28,000 price range for a long time. There weren’t any movements this or that way, and the return of price volatility is good news. The catalyst was GBTC’s conversion to a spot Bitcoin ETF as well as the SEC’s plans to approve spot ETFs next week. More importantly, it shows that there’s a lot of life left in the crypto market after it went stale for a couple of months.
Bitcoin’s price and good ol’ volatility are making a return, and many traders are excited about it. As soon as the news hit the world wide web, the price went up for nearly $1,700 in just half an hour. It upended the stale trading environment which has been going on for months, with snap losses in mid-August that had everyone concerned.
It all started when the US Court of Appeals for the District of Columbia Circuit stated that the SEC was wrong to reject Grayscale’s application for a spot Bitcoin ETF. This denial was arbitrary and capricious due to SEC’s inability to explain the different treatments of similar products. We’re talked about this crucial SEC inability for a long while, and the court thinks the same. Thanks to its decision, Grayscale’s petition has been granted, and the order vacated.
What this means is that the SEC will need to approve the first batch of spot Bitcoin ETFs as soon as next week. It’s a historic moment that sent Bitcoin’s price flying and enabled some good vibes on the crypto market in general that rattled the staleness off.
What’s Next?
Things won’t happen overnight – that’s for sure. According to Michael van de Poppe, CEO of trading firm Eight, the court’s decision will have a major positive impact on all the existing ETF applications. It may even push Blackrock’s application up the pecking order which will cause tectonic moves on the market. He predicts a start of a bull cycle with this news, which was obviously based on the hugely volatile price uptick.
One thing’s for sure – the SEC is slowly losing ground and times will start changing for the best. As soon as the first batch of Bitcoin spot ETF’s go live, we expect the market to go green once again.