Causes Of Bitcoin And Altcoin Prices Flying Immediately

Observers are optimistic that the Bitcoin ETF will be approved by regulators. (Photo; Doc. ChainBits)

JAKARTA - The crypto market surged within 24 hours of Grayscale's win in court against the SEC on August 29, which is considered an important milestone on the way to approval for the planned spot's Bitcoin ETF on October 23.

Grayscale Bitcoin Trust (GBTC) jumped 5.9% on the day, and a number of other crypto assets also experienced an increase. Bitcoin (BTC) prices rose 7.6% in a 24-hour period ending at 22:00 UTC on October 24. Bitcoin is superior to Ethereum (ETH) which rose 3.9% in the same period, while the entire crypto market has increased by 5.4%.

Grayscale intends to convert GBTC funds into Bitcoin Exchange Trade Fund (ETF). The court's decision on August 29 forced the US Securities and Exchange Commission (SEC) to review related proposals. This case was again in the spotlight this week as the court issued an official mandate encouraging the review process.

In addition, Coinbase (COIN) shares also rose 6.3%. This increase may be related to the deadline for filing in corporate legal cases with the SEC or other developments related to crypto exchanges. It should be noted that Coinbase is expected to participate in the surveillance of several planned ETFs, including by BlackRock, although they are not included in Grayscale's proposed funds.

Although hopes are increasing, the approval of the Bitcoin spot ETF is still far from guaranteed. Although the positive developments are evident, the SEC has not approved such a product, and there are a number of reasons to remain vigilant. First, although the SEC was asked to review Grayscale's proposal, that doesn't mean a definite agreement.

In addition, reports on the progress of ETF BlackRock appear to be early. Tickets for the planned BlackRock ETF recently emerged, but later disappeared from the list on the Depository Trust & Clearing Corporation (DTCC) website.

Despite high expectations, former SEC attorney Tom Gorman, who is no longer involved in the agency, argues that approval for the Bitcoin spot ETF is still uncertain.