SEC Gives Up on Grayscale ETF Lawsuit: Will Bitcoin Price Break $30k?

The SEC has decided not to appeal the court ruling that favored Grayscale Investments, a leading digital asset management firm, in its bid to launch a Bitcoin ETF. This signals a positive step for the crypto industry, as the SEC will have to reevaluate Grayscale’s application within the next two weeks. However, Bitcoin price did not react much to the news, as it only rose by 0.15% in the last 24 hours, hovering close to $27k. And if no more bad news we’re expecting Bitcoin to break $30k in the next pump.

Some analysts and investors expect the ETF approval to boost Bitcoin’s value and adoption, while others are skeptical or bearish about its short-term prospects. Bitcoin’s network activity and hodling behavior remain strong, but short positions are also increasing. Will Bitcoin cross $30k as the ETF saga unfolds?

Bloomberg ETF analysts James Seyffart and Eric Balchunas have increased their odds of a spot Bitcoin ETF approval by the US Securities and Exchange Commission (SEC) to 90% by January 2024. They based their prediction on the recent amendments made by ARK Invest and 21Shares to their spot Bitcoin ETF application, which they believe indicate a positive feedback from the regulator. A spot Bitcoin ETF would track the price of the cryptocurrency directly, unlike the futures-based ETFs that have been approved so far.

A spot Bitcoin ETF could boost the demand and adoption of Bitcoin, as well as its price, according to some experts. However, the SEC has delayed its decision on all spot Bitcoin ETFs until next year, citing concerns about market manipulation, custody, and investor protection. The SEC’s stance could change after a court ruling that favored Grayscale Investments, a leading digital asset manager, in its bid to convert its Bitcoin trust into a spot ETF. The court ordered the SEC to review Grayscale’s application again, giving it a deadline of October 13 to appeal. The SEC did not appeal, which could mean that it will have to reevaluate Grayscale’s and other applicants’ proposals within the next two weeks. This could pave the way for the first spot Bitcoin ETF to launch in the US, possibly as early as next year.

📈 #Bitcoin $BTC Amount of HODLed or Lost Coins just reached a 5-year high of 7,906,288.227 BTC

View metric:https://t.co/dJK8rxBVD3 pic.twitter.com/6OxLnd611f

— glassnode alerts (@glassnodealerts) October 6, 2023

As soon as any Bitcoin ETF is approved we can be certain that the bottom is already in for this Bear cycle which coincides at the end of this year or early next year.