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- Grayscale’s victory over the SEC has brought optimism to the crypto market, with a surge of interest from whales.
- Grayscale’s legal team has requested that the SEC quickly approve NYSE Arca’s Rule 19b-4 application, providing a fair playing field for GBTC for nearly a million investors.
- The growing interest of whales could have profound implications for Bitcoin
going forward. In particular, the high accumulation of BTC may increase prices.
Increasing institutional interest in Bitcoin is not only demonstrated by the Grayscale victory and ETF filings: Whales set a new BTC accumulation record!
Grayscale’s Victory Boosts Positive Sentiments in the Market
Grayscale’s victory against the SEC brought optimism to the crypto market, accompanied by a rise in whale interest. However, subsequent developments indicated that Grayscale’s legal challenges were not yet over.
On August 29th, the DC Circuit Court unanimously overturned the SEC’s rejection of the transformation of Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. This victory was celebrated by GBTC shareholders and the entire crypto community.
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Following the court’s decision, Grayscale’s legal team sent a letter to the SEC. The letter emphasized that there was no valid reason to distinguish spot Bitcoin ETFs from Bitcoin futures ETFs, as evidenced by the SEC’s previous decisions.
The letter also stated that the Trust’s Rule 19b-4 application had been unfairly delayed for an extended period, which was unlawful. Grayscale’s legal team demanded that the SEC promptly approve NYSE Arca’s Rule 19b-4 application and provide a level playing field for GBTC for nearly one million investors.
GBTC is fully ready to operate as an ETF once it receives regulatory approval. However, despite this legal victory, it may not guarantee an immediate transformation of the Bitcoin investment landscape.
Increasing Institutional Interest
Institutional interest in Bitcoin was not only demonstrated through ETF applications. Over the past few months, Bitcoin garnered significant attention, as per Glassnode’s data, indicating that the number of addresses holding 10 or more coins reached an all-time high at the time of the press. This milestone, with 157,460 addresses compared to the previous record of 157,458 on September 20, 2019.
The growing interest from whales could have profound implications for Bitcoin’s future. Especially, the accumulation of BTC can drive up prices. This may also contribute to the centralization of the cryptocurrency.
Despite the positive signs of increased whale interest, Bitcoin miners experienced a decline in their revenues. This drop in miner revenues was concerning because miners may need to sell their assets to sustain profitability. Such selling pressure could contribute to downward movements in the cryptocurrency’s prices.