Coinbase's Stock Soars as Federal Judge Rules in Favor of Grayscale in SEC Dispute
Summary:
Coinbase's stock surges as a federal judge rules in favor of Grayscale in their SEC legal battle. This verdict brings hope for the potential arrival of a Bitcoin ETF and investors seek direct exposure to Bitcoin. Coinbase could become a custodian and partner for sharing surveillance data. BlackRock and other prominent firms are also vying for SEC approval for a Bitcoin ETF. Despite recent price increases, Bitcoin remains far below its November 2021 peak.
Coinbase's stock saw a remarkable surge on August 29th following reports of a federal judge ruling in favor of Grayscale in their legal dispute with the SEC. By the end of the trading session that day, the value of COIN stood at $85.13 per share, marking a more than 15% increase from the previous day's close. Coinbase, the largest cryptocurrency exchange in the US, has been listed on the Nasdaq since 2021. Yesterday, a federal court ruled that the SEC did not provide consistent justification for rejecting Grayscale's request to transform its Bitcoin Trust into a traditional Bitcoin ETF. This verdict, seen as a win for the cryptocurrency industry by investors, has fueled hopes for the potential arrival of a Bitcoin ETF in the financial landscape. Coinbase has been selected as a potential custodian and partner for sharing surveillance data among the contenders vying to introduce a Bitcoin ETF. In doing so, the San Francisco-based company would collaborate on sharing trading data, clearing operations, and customer identification to mitigate market manipulation risks and ensure secure Bitcoin storage. Currently, the US lacks a Bitcoin spot ETF due to the SEC's hesitation in granting approval. However, there are cryptocurrency ETFs linked to futures contracts available in the country, allowing investors to speculate on digital asset prices in the future. Despite this, investors are still seeking an investment instrument that offers direct exposure to Bitcoin. In June, BlackRock, the world's largest asset manager, joined several other prominent applicants in seeking SEC approval for a Bitcoin ETF, citing strong demand for cryptocurrency exposure from their clients. As of now, the price of Bitcoin stands at $27,982 per coin, indicating a more than 7% increase in the past 24 hours according to Coinmarketcap data. However, the leading cryptocurrency by market capitalization remains significantly below its peak of $69,044 in November 2021.
Published At
8/30/2023 1:29:08 PM
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