© Reuters.
Grayscale has emerged victorious in a lawsuit against the U.S. Securities and Exchange Commission (SEC) over its Bitcoin ETF review.
The rose 6.2% yesterday to close above the 200 moving average for the first time since January.
A historic victory for cryptocurrencies
The appeals court ruled that the SEC’s rejection of Grayscale’s Bitcoin ETF application was “arbitrary and capricious.”
The SEC initially denied Grayscale’s (Grayscale Bitcoin Trust) request, finding that the products were not sufficient to prevent fraudulent and manipulative practices.
Grayscale responded by filing a lawsuit, and the recent judgment overturned the SEC’s decision.
In a ruling on August 29, U.S. Court of Appeals Judge Neomi Rao granted Grayscale’s request for review and reversed the SEC’s order denying GBTC’s listing application. Judge Rao previously criticized the SEC for failing to provide an adequate explanation for its decision against Grayscale.
However, it is important to note that this court ruling does not guarantee the eventual listing of a Grayscale spot Bitcoin ETF. Citi analysts say the move “makes the advent of a spot Bitcoin ETF more likely.”
“Recent court decisions and the advancement of legislation globally are boosting sentiment,” analysts wrote in a report.
Bernstein analysts believe the decision is another “historic win” for the crypto industry.
“This move likely paves the way for a Bitcoin ETF and gives Grayscale a fair chance to be considered along with the other 7 candidates (Blackrock, Fidelity, Invesco, Valykrie, ARK, Van Eck, Bitwise),” the analysts write.
Price prediction for September
Bitcoin price gained more than 6% on Tuesday to close above the daily moving average of 200 for the first time in nearly nine months. The price action is now moving back down to retest the broken resistance.
A close above this important technical indicator could attract more buying activity, with the 200 moving average ($28,465) acting as the next important resistance level. The key target for bulls in September remains the 2023 high near $32,000.
“The upside move is associated with the increase in our near-term indicators, supporting follow-up in the days ahead against the backdrop of bitcoin’s trading range,” Fairlead Strategies analysts said.
“However, our medium-term indicators are still pointing down, supporting further consolidation in the coming weeks, similar to late May/early June. Initial resistance stands at the 50-day average (~28 .8K), and secondary resistance is at the weekly cloud level near $31.9K.”
Bitcoin is still down 6.3% in August.