Tuesday witnessed a surge in crypto assets following a landmark ruling by the US Court of Appeals for the DC Circuit in the case of Grayscale Investments vs. SEC. The court declared that the SEC acted unreasonably in denying Grayscale the opportunity to launch a Bitcoin ETF, resulting in a significant victory for the crypto behemoth.
Established in 2013, Grayscale has been a pioneer in providing the public with access to crypto assets through unconventional means. Its most notable offering is the Grayscale Bitcoin Trust (GBTC), the first publicly traded Bitcoin trust in the United States.
Although GBTC has long been in a battle with the Securities and Exchange Commission (SEC) to convert into a Bitcoin ETF, the recent court ruling has paved the way for other Bitcoin applicants to enter the market. Companies such as Fidelity, BlackRock (BLK), and ARK are likely to benefit from this momentous decision.
Another major winner in this development is Coinbase (COIN), the prominent US crypto exchange. As the custodian exchange in nearly every Bitcoin ETF application, Coinbase stands to gain significantly. The news of the court ruling drove Coin shares up by 15% and helped them regain the 50-day moving average on high trading volume.
Publicly traded Bitcoin miners, including Marathon Digital (MARA) and Bitfarms (BITF), also stand to benefit from the rise of Bitcoin adoption. As the demand for Bitcoin increases, the Bitcoin rewards earned by these companies through mining become more valuable.
A noteworthy indirect winner in this situation is software company MicroStrategy (MSTR). Having adopted the “Bitcoin Standard” years ago, MicroStrategy holds billions in Bitcoin. The success of Bitcoin directly impacts the financial performance of MicroStrategy.
Overall, the decision in the Grayscale case has opened new doors for the crypto industry and brought positive implications for various players, including Bitcoin ETF applicants, Coinbase, Bitcoin miners, and proxies like MicroStrategy.