Bitcoin (BTC) has rallied by approximately 5%, surpassing the $27,000, following a federal appeals court’s verdict that mandates the U.S. Securities and Exchange Commission (SEC) to review its rejection of Grayscale Investments’ endeavor to transform its Grayscale Bitcoin Trust (GBTC) into an ETF, news reports said.
GBTC has surged by 17%, significantly reducing its discount to net asset value (NAV) from 25% to 17%, as traders bet on the potential for an ETF conversion that could entirely eliminate this discount.
The court ruling has potentially unlocked the gateway for a spot bitcoin ETF in the U.S., a development that proponents have long advocated for as it could broaden public access to bitcoin investment without the complexities of direct purchases or concerns over custodial providers collapsing.
Circuit Judge Neomi Rao, delivering the opinion of the D.C. Circuit Court of Appeals, emphasized the requirement for federal agencies to treat similar cases uniformly.
Among publicly traded crypto entities, Coinbase (COIN) has surged by 13%, and MicroStrategy (MSTR) has advanced by 9%. Mining companies, which have faced significant downturns, have witnessed even greater gains, with Marathon Digital (MARA) up by 24%, while Riot Platforms (RIOT) and Hut 8 Mining (HUT) each recorded gains of 16%.
Altcoins are also registering substantial increases, with ether (ETH), cardano (ADA), dogecoin (DOGE), and solana (SOL) all progressing by around 5%.
