The Federal Court ruled (August 29) favorably on Grayscale’s petition — that their request to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF — must be reviewed by the SEC. Bitcoin (BTC) price immediately reacted to this news, registering gains superior to 5% just a few minutes after the ruling, causing over $30 million in liquidations in 30 minutes.
“The denial of Grayscale’s proposal was arbitrary and capricious because the SEC failed to explain its different treatment of similar products. We therefore grant Grayscale’s petition and vacate the order.”
— RAO, Circuit Judge
Federal Court judgment “On Petition for Review of an Order of the SEC”. Source: Document
The ETF expert James Seyffart explains that now, the SEC has to issue another order with a deadline of 45 days, but this does not mean that the Grayscale spot Bitcoin ETF will be approved.
BTC 1-day price chart. Source: Finbold
Coinglass account on X reported a total liquidation superior to $30 million in Bitcoin short positions, in less than 30 minutes. Making it over $1 million per minute losses for BTC ‘bears’.
Over $30 Million in #Bitcoin Short Liquidations in 30 Minutes after the news of Grayscale winning their lawsuit against the SEC?https://t.co/C47AgBCcTk pic.twitter.com/ycmMaX6zrf
— CoinGlass (@coinglass_com) August 29, 2023Interestingly, this positive news triggered the predicted short squeeze for this week, covered by Finbold on August 28. The above projection could drive the BTC price to $28,300. Further market news and updates will have an important role in defining the following trend after Bitcoin reaches its current range’s highs at mentioned prices.
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