The SEC might counter Grayscale’s success in the spot Bitcoin ETF with alternative arguments for rejection, possibly focusing on concerns about the spot Bitcoin market. This could impact Bitcoin’s price due to macroeconomic data releases and anticipation of the SEC’s response to the panel’s decision.
The prices of cryptocurrencies like Bitcoin, Ethereum, and other top 30 assets have gone up recently. This rise is linked to Grayscale winning against the US SEC in its lawsuit for a spot Bitcoin ETF application.
There are two things that could affect Bitcoin’s price in the near future. First, the release of economic data from the US, and second, what the SEC does after the Federal Court’s decision on the Grayscale case.
SEC Could Reject Spot Bitcoin ETFs Again
The US SEC might use different reasons to decline the spot Bitcoin ETF application by Grayscale, as noted by analysts from Berenberg bank, reported by CoinDesk.
Even though the Federal Court didn’t require the SEC to approve the ETF application, it asked them to reevaluate their arguments for rejecting Grayscale’s application. The SEC still has the option to appeal the panel’s decision and provide arguments backing its concerns regarding the spot Bitcoin market.
Berenberg’s analysts mentioned that Coinbase’s involvement in the spot Bitcoin ETF could worsen the regulator’s worries and reinforce its reasons for opposing the approval of such a trading product.
Coinbase is currently facing a lawsuit from the US financial regulator over allegations of operating as an unregistered securities exchange.
The analysts, led by Mark Palmer, explained that Coinbase’s involvement aligns with the SEC’s revised arguments against spot ETF applications. This development might impact the sentiment of Bitcoin holders and potentially hinder its price in the near term.
As of now, Bitcoin’s price on Binance stands at $27,201. Over the past week, the asset has provided a 2.91% gain for BTC holders.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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