2023-08-29 20:57:58
Why does Bitcoin rise after Grayscale’s win against the SEC?
BlockTrends – The price of (BTC) rises more than 7%, above $ 28,000 this Tuesday (29). The reaction comes after the news that Grayscale was victorious in the dispute with the US Securities and Exchange Commission (SEC). The process refers to the transformation of your fund, GBTC, into an ETF. The favorable decision was issued by the United States Court of Appeals.
For Luiz Parreira, founder of Bipa, this decision reflects the growing acceptance of Bitcoin. ETFs are a gateway for investors in the traditional market to venture, with a certain amount of security, into the crypto market.
“Therefore, it is a valid and efficient way to win over more fans. The use of ETFs also contributes greatly to the demystification of cryptocurrency, reducing the risky investment image that crypto assets carry, since regulated financial products tend to attract larger investors”, he says.
Despite this, Parreira points out that it is important to remember that investors who opt for ETFs will not have ownership of their assets, only exposure to their value. “This deprives them of the opportunity to use Bitcoin as a currency, in addition to losing autonomy in managing their assets, going against some of the fundamental principles of Bitcoin”, he says.
Only news does not support
In the opinion of André Franco, head of analysis at Mercado Bitcoin (MB), the increase would only be sustainable if there is indeed confirmation of the conversion of the manager’s ETF. There is currently a 45-day deadline for the SEC to request a hearing with the three judges in the case before reaching a final court decision.
“The most likely thing is that they will postpone the decision on this ETF, but the market is substantially changing its structure. With just the slim chance, he jumped. However, the news alone does not support the price,” he says.
Despite this, Franco also comments that the ETF is an investment vehicle aimed at institutional investors. Therefore, the biggest thesis is that of adoption by large investors. “Structurally it doesn’t change anything, but it accelerates the process of institutionalizing the crypto market”, he concludes.
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