According to Bernstein, US Court Opens the Way for Spot Bitcoin ETFs

• Grayscale achieved its second historic victory for the crypto industry against the US Securities and Exchange Commission (SEC) following Ripple’s positive decision last month.
• The decision “likely paves the way for a spot Bitcoin ETF” and increases the likelihood of SEC approving all current applications – analysts led by Gautam Chhugani wrote.
• According to data from Santiment, Bitcoin whales and sharks accumulated 14,596 BTC on the day the court decision in the Grayscale and SEC case was expected.

According to a report published by Bernstein, Grayscale’s victory did not directly convert GBTC to an ETF, but this decision opens the way for ETFs.

Bernstein Interprets Grayscale’s Court Decision

Grayscale achieved its second historic victory for the crypto industry against the US Securities and Exchange Commission (SEC) following Ripple’s positive decision last month, as stated in a research report published by broker Bernstein on Tuesday.

A federal court ruled on Tuesday that the SEC should reconsider its attempt to convert GBTC into an exchange-traded fund (ETF). The decision “likely paves the way for a spot Bitcoin ETF” and increases the likelihood of SEC approving all current applications – analysts led by Gautam Chhugani wrote.

ETFs trade on an exchange like stocks and track the performance of an underlying asset. They are growing in popularity because they allow market participants to invest in cryptocurrencies without buying the underlying digital assets.

The court decision does not allow immediate conversion of the GBTC product into an ETF, but as stated in the report, it “provides a fair basis for treating Grayscale the same as other Bitcoin ETF applicants.”

The possible dates for approval range from next week for the initial review to early 2024 for the final SEC review, as noted in the report. Bernstein previously predicted that the spot Bitcoin ETF market would be significant and that Bitcoin’s market value would reach 10% within two to three years.

Whales Accumulated BTC on the Day of the Court

According to data from Santiment, Bitcoin whales and sharks accumulated 14,596 BTC on the day the court decision in the Grayscale and SEC case was expected. The analytics firm shared this data with the following statement;

“Whales and sharks may know one or two things about the outcome of the Grayscale and SEC case; wallets with 10 BTC – 10,000 BTC accumulated a total of $388.3 million in BTC on the day the news broke and were generously rewarded with a 6% price increase.”