On August 29, 2023, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit unanimously sided with Grayscale in its long-running battle with the Securities and Exchange Commission regarding the approval of its application to convert its Grayscale Bitcoin Trust GBTC into an exchange-traded fund.
The court vacated the SEC's June 2022 rejection of a proposed rule change that would have allowed NYSE to list and trade shares of GBTC. The court found that the SEC's decision was "arbitrary and capricious" because it was inconsistent with the SEC's treatment of similar products.
How Did the Stocks Connected to Bitcoin Do After the Ruling?
The stocks connected to Bitcoin saw a sharp rise in their prices after the ruling. For example, PayPal's PYPL stock price rose by over 10%, Square's SQ stock price rose by over 5%, and Grayscale Bitcoin Trust stock price rose by over 20%.
Other stocks that are connected to Bitcoin include:
- Coinbase Global COIN
- Riot Blockchain RIOT
- Marathon Digital Holdings MARA
- MicroStrategy MSTR
These stocks are all volatile, and their prices are often correlated with the price of Bitcoin. However, they can also be affected by other factors, such as the overall performance of the stock market and the regulatory environment for cryptocurrencies.
Sandra Stone, author of the article is the founder of TradingMadeSimple.org a professional Discord service that provides live trading, trade alerts, custom trade indicators, option flow, and access to a community of like-minded traders.
How The Stocks Connected To Bitcoin Are Doing Now
The stocks connected to Bitcoin have since pulled back from their highs after the ruling. However, they are still trading above their prices before the ruling.
This suggests that investors are still optimistic about the future of Bitcoin ETFs, even though the SEC has not yet made a decision on Grayscale's application.
As you can see, all of these stocks were up on August 30, 2023, following the announcement of the approval of the Grayscale Bitcoin Trust ETF. The overall market was also up on that day, so the positive performance of these stocks is not surprising.
However, it is important to note that the stock market is volatile, and the prices of these stocks can go up and down in the short term. If you are considering investing in any of these stocks, it is important to do your own research and understand the risks involved.
Recent SEC News On Grayscale
The SEC has 60 days to file a petition for a rehearing. It could also appeal the decision to the Supreme Court. However, the ruling is a major victory for Grayscale and the Bitcoin industry. It is a positive sign that the SEC is becoming more open to the idea of Bitcoin ETFs.
The future of Bitcoin ETFs is still uncertain. However, the SEC's ruling is a positive step forward. It could lead to more ETF approvals in the future.
The stocks that are connected to Bitcoin are a volatile asset class. However, they have the potential to offer investors exposure to the growth of the cryptocurrency market. If you are considering investing in these stocks, it is essential to do your own research and understand the risks involved.
If you're serious about learning how to trade, Trading Made Simple is the perfect solution.
Contact Sandra today at TradingMadeSimple.org, 714-202-7361, and follow her on X: Options_Sandy
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