Bitcoin's Bullish Surge to $35,000: Deciphering Fact from Fiction
John Barry | Tue Oct 24 2023
In the dynamic world of cryptocurrencies, it’s imperative to discern between solid facts and mere conjecture, especially when market sentiment can be influenced by both. Bitcoin's recent price surge to $35,000 provides a vivid case in point.
The Grounded Reality: SEC and Grayscale
Undoubtedly, one of the major catalysts propelling Bitcoin's price has been the legal battle between the U.S. Securities and Exchange Commission (SEC) and Grayscale. The saga reached its climax with the D.C. Circuit Court of Appeals' final judgment in favor of Grayscale. The court effectively lambasted the SEC for being "arbitrary and capricious" in its dismissal of Grayscale's spot bitcoin ETF application, an endeavor to metamorphose its hefty $17 billion Grayscale Bitcoin Trust (GBTC) into a spot ETF.
While the SEC's nonchalance in not appealing against the court's ruling was surprising to some, it has certainly been a shot in the arm for Bitcoin proponents. This pivotal decision essentially mandates the SEC to reconsider Grayscale's application. Yet, the SEC, still sifting through a plethora of other spot bitcoin ETF applications from behemoths like BlackRock, Fidelity, and Franklin Templeton, has retained its penchant for unpredictability.
The Misconception: BlackRock's ETF Symbol Addition to DTCC
The crypto sphere was recently abuzz with the news of BlackRock listing its Bitcoin ETF on the Depository Trust & Clearing Corp. (DTCC) database under the ticker $IBTC. Subsequent amendments in filings with the SEC indicated their eagerness to seed the ETF by October 2023.
Matteo Greco, a research analyst at Fineqia, mentioned, “This proactive approach from Blackrock suggests their readiness to commence trading immediately upon gaining the SEC's nod, reinforcing the buoyant mood about an imminent approval.”
However, this is only a procedural update, listing a trading symbol is, after all, a preparatory step, indicative of hope rather than a guaranteed outcome.
SEC's Crypto Conundrum
Historically, the SEC hasn’t exactly been the poster child for crypto advocacy. Its proclivity to challenge crypto initiatives is well-documented, whether it's the ongoing lawsuit against Coinbase or its previous skirmishes with Ripple Labs over XRP's classification.
BlackRock's proactive steps, while commendable, don't guarantee an endorsement from the SEC. Their delay in decision-making on the spot ETF application by BlackRock and other institutions suggests caution, if not skepticism.
In the ever-evolving narrative of cryptocurrencies, it's paramount to strike a balance between optimism and grounded reality. While the Grayscale victory heralds a promising future for Bitcoin, one must approach the BlackRock development as hope not a guarantee. In the crypto universe, it's always best not to always trust the SEC. Additionally if the hope becomes a reality, the term "buy the rumor and sell the news" may prove to be true once again.
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