Bitcoin Surges Past $28,000 and GBTC Discount Narrows to 17%
Jessie A Ellis Aug 29, 2023 18:00
Bitcoin's value surged to $28,142 on Binance after Grayscale Investments won a lawsuit against the SEC, converting its Grayscale Bitcoin Trust into an ETF.
Following Grayscale Investments' decisive win in its lawsuit against the U.S. Securities and Exchange Commission (SEC), Bitcoin's value reached an apex of $28,142 on Binance. Concurrently, the discount rate for Grayscale's Bitcoin Trust (GBTC) experienced a notable contraction, shrinking from a previous 25% to a current 17%.
The court ruling has instilled renewed confidence in the cryptocurrency market, leading to bullish sentiment and immediate market reactions. On August 29, 2023, the D.C. Circuit Court of Appeals ruled in favor of Grayscale Investments, allowing the firm to convert its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). This groundbreaking decision has set a precedent for digital asset managers and has opened new avenues for regulated cryptocurrency investments.
The market's swift response to the legal victory was evident not just in Bitcoin's new peak but also in the increased demand for GBTC shares, as reflected in the rapidly compressing discount rate.
Digital Currency Group (DCG), the parent company of Grayscale, expressed their satisfaction with the court's decision. In a tweet, DCG stated, "Today’s ruling by the D.C. Circuit in favor of @Grayscale and $GBTC is a historic victory for crypto advocates. We are pleased with the immense progress that this decision represents."
The rise in Bitcoin's price and the decrease in the GBTC discount rate are both direct results of Grayscale's success in their legal battle against the SEC. The regulatory environment is always shifting, and market players will be paying careful attention to how recent developments and upcoming changes will affect the bitcoin ecosystem as a whole as this process continues.
Image source: Shutterstock