- Bitcoin Cash surges 17% following Grayscale’s significant legal victory over the SEC in converting its Bitcoin Trust to a spot ETF.
- Grayscale’s court win represents a momentous milestone in crypto regulation and has cascading effects on Bitcoin-linked cryptocurrencies like Bitcoin Cash and Stacks.
The Ripple Effect of Grayscale’s Court Victory
In the aftermath of Grayscale’s legal victory against the U.S. Securities and Exchange Commission (SEC), the cryptocurrency market is awash in a bullish tide. Notably, Bitcoin Cash, a cryptocurrency that diverged from the Bitcoin blockchain in a 2017 fork, is the biggest winner among the top 100 cryptocurrencies by market capitalization. While Bitcoin has noted a respectable 7% gain in the last 24 hours, Bitcoin Cash outshines it with a 17% surge, currently trading at approximately $223.
For context, a blockchain “fork” occurs when there’s a division in the consensus over the set of rules governing the blockchain, resulting in a split to form two divergent chains. In 2017, Bitcoin Cash emerged from such a fork with Bitcoin, adopting a distinct set of rules but sharing historical blockchain data up to the point of divergence.
Landmark Legal Milestone Unlocks Crypto Potential
Tuesday’s decision by the U.S. Court of Appeals for the D.C. Circuit is a watershed moment in the regulatory landscape of cryptocurrency. The court ruled that the SEC “failed to adequately explain” its refusal of Grayscale’s application to convert its Bitcoin Trust into a Bitcoin spot Exchange-Traded Fund (ETF). A spot ETF would offer investors exposure to Bitcoin without necessitating direct ownership of the cryptocurrency, thereby potentially catalyzing broader institutional adoption.
The SEC now finds itself in a position where it must reconsider Grayscale’s ETF application, although it retains the option to appeal the decision within a 45-day window. The authority has a track record of denying spot Bitcoin ETF applications, often invoking market manipulation as the primary concern.
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Other Beneficiaries of the Bullish Wave
Stacks, a layer-2 network that augments the Bitcoin network with functionalities like decentralized applications and NFTs, also basks in the post-court-ruling euphoria, registering a 13% growth and trading at around $0.51. In another twist, Bitcoin SV, which itself is a fork from Bitcoin Cash, has escalated by 10% within the last 24 hours to a current trading price of $34.
The broader cryptocurrency market mirrors this optimistic sentiment, marking an overall increase of over 5% in the last day, as per CoinGecko’s metrics. Clearly, the ripples of Grayscale’s groundbreaking legal triumph are far-reaching, touching multiple nodes in the intricate web of cryptocurrencies.
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