This week’s sideways trading and low volatility pattern are still present in today’s cryptocurrency markets. Despite yesterday’s relatively large trading volume, we expect additional declines on Thursday for important crypto assets like Bitcoin and Ethereum. A press release announcing the Grayscale CEO’s lawsuit against the SEC is the biggest market news of the day.
Key Notes:
- Grayscale filed a lawsuit against the SEC after it was refused permission to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF.
- In favor of Grayscale’s pursuit of a spot ETF, Coinbase and other industry titans submitted an amicus brief.
- The trading volume on Thursday slightly decreased as cryptocurrency markets continued to trade sideways.
A lawsuit filed by Grayscale Investments against the SEC
The biggest asset management for digital currencies is Grayscale Investments, which facilitates access to the cryptocurrency market for clients and investors. Grayscale is a pioneer in cryptocurrency investing, and its “Grayscale’s Product Family” includes a variety of 23 cryptocurrencies.
Grayscale filed a lawsuit against the SEC after it was refused permission to convert its Grayscale Bitcoin Trust (BTC) into a spot Bitcoin ETF. In its legal filing, Grayscale claims that the Securities and Exchange Commission unfairly targets its product and that the process it used to evaluate Bitcoin-related ETFs was invalid and “inconsistently administered with a unique severity.”
While rejecting ETFs that hold Bitcoin directly, the SEC approved a number of Bitcoin futures ETFs in 2021 and 2022.
The SEC has historically been very strict when it comes to certifying any items related to cryptocurrencies, so this is not surprising. The commission has been targeting cryptocurrency exchanges, initiatives, and influencers over the past few months. While the SEC’s tough measures against cryptocurrencies may be justified by the notion that the government agency is trying to safeguard investors from the volatile crypto markets, there is a thin line between regulation and stifling innovation.
Since new crypto finance products could offer a plethora of new functions, opportunities, and revenue, it is crucial that the United States has plenty of room to innovate and that developers and projects don’t hesitate to make them.
Coinbase and other cryptocurrency industry pioneers have come out in favor of Grayscale.
Coinbase and other key figures in the cryptocurrency sector have submitted an amicus brief in support of Grayscale’s plans to introduce a spot-bitcoin ETF.
An amicus brief, which translates from Latin as “friend of the court,” is a legal document written by a party who is not involved in the case. The brief aids the court by providing more pertinent data for it to weigh before making a decision.
It’s wonderful to see the bitcoin sector unite to influence the SEC’s decision to allow Grayscale to introduce its Bitcoin ETF. If the ETF is approved, it will give Bitcoin the much-needed bullish boost it needs, and it will also positively impact other crypto assets like Ethereum and XRP.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Follow us on Twitter @thevrsoldier to stay updated with the latest Metaverse, NFT, A.I., Cybersecurity, Supercomputer, and Cryptocurrency news!
Image Source: Mikhail Pavstyuk on Unsplash // Image Effects by Colorcinch
