By Grayscale, Bitcoin Was Saved From a Torrid August

(CTN News) – With bitcoin’s gains thanks to a recent U.S. court ruling, which strengthens the future prospects for retail investor-friendly funds, the original cryptocurrency has been rescued from a torrid month, offering new optimism regarding its longer-term potential.

A federal court ruled on Tuesday that the Securities and Exchange Commission’s denial of Grayscale Investment’s proposal was “arbitrary and capricious”, giving the crypto asset manager a significant victory that could pave the way for the first product of its kind to be developed in the near future.

During the news btc, one of the most popular cryptocurrencies, surged 7%, setting it up for its best day since March, as well as reducing some of the losses it suffered over the summer.

As of last trading, it was trading at $27,933.

Having been battered by the fall in demand for riskier assets as a result of the rise in U.S. Treasury yields, as well as the fall in volatility over the quiet summer trading, bitcoin had before the ruling been on course for its worst month since November 2022, when tumult reigned following the demise of the FTX exchange. It is now on track for monthly losses of around 5%.

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It is likely that Grayscale’s win will now factor into the SEC’s future decisions regarding spot bitcoin ETFs filed by several large financial firms this year, including BlackRock (BLK.N), the world’s largest asset manager.

It is conceivable that the advent of spot bitcoin ETFs could help bolster the price of bitcoin by tapping a glut of retail investor capital that had previously gone untapped.

” It is likely that this ruling will be viewed as a significant sign that a Bitcoin spot ETF is not far off, according to Noelle Acheson, an economist who has followed the crypto sector for quite some time, who has been predicting the arrival of the spot ETF.

It would seem, however, that bitcoin’s future prospects still depend on the performance of wider markets, according to some investors.

” Cryptocurrencies are still considered speculative and growth plays in the market, and a muddy macro picture will keep a lid on the market for the foreseeable future,” said Anders Kvamme Jensen, founder of brokerage firm AKJ.

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