The low volatility trend and sideways trading seen this week are still present in today’s cryptocurrency markets. Even though trading volume yesterday remained comparatively high, we anticipate further drops this Thursday for top crypto assets like Bitcoin and Ethereum. A press release announcing that the CEO of Grayscale is suing the SEC is the biggest market news of the day.
Summary:
- For objecting to its conversion of the Grayscale Bitcoin Trust to a spot Bitcoin ETF, Grayscale is suing the SEC.
- Coinbase and other influential industry members submitted an amicus brief in support of Grayscale’s bid for a spot ETF.
- The trading volume in cryptocurrency markets has slightly decreased on Thursday as they continue to move sideways.
Grayscale Investments Files Lawsuit Against The SEC
The largest digital currency asset manager, Grayscale Investments, facilitates clients’ and investors’ access to the crypto markets. Under its “Grayscale’s Product Family,” Grayscale, a pioneer in digital currency investments, offers a variety of 23 cryptocurrencies.
For refusing to allow it to convert the Grayscale Bitcoin Trust (BTC) into a spot Bitcoin ETF, Grayscale has filed a lawsuit against the SEC. In the legal brief, Grayscale claims that the Securities and Exchange Commission unfairly targets its product and that the test it used to evaluate Bitcoin-related ETFs was invalid and “inconsistently applied with a special harshness.”
In 2021 and 2022, the SEC approved several Bitcoin futures ETFs but rejected ETFs that hold actual Bitcoin.
It’s not surprising that the SEC has historically been very strict when it comes to approving any products related to cryptocurrencies. The commission has been going after cryptocurrency projects, influencers, and exchanges 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 protect investors from the volatile crypto markets, there is a thin line between regulation and stifling innovation.
After all, the creation of new crypto finance products that could offer a wide range of new functions, opportunities, and revenue is crucial if the United States is to have a sufficient amount of room for innovation.
In support of Grayscale’s efforts to introduce a spot-bitcoin ETF, Coinbase and other key figures in the cryptocurrency sector have submitted an amicus brief.
A legal document written by a party who is not involved in the case is known as an amicus brief, which translates from Latin to mean “friend of the court.” The brief aids the court by providing additional significant information to consider before ruling.
It’s encouraging to see the community of the cryptocurrency sector comes together to try and influence the SEC’s decision to allow Grayscale to introduce its Bitcoin ETF. If the ETF is accepted, it will give Bitcoin the much-needed bullish support it needs, eventually spreading to other crypto assets like Ethereum and XRP.
Crypto Market Price Update
The cryptocurrency market is currently trading sideways with a marginally lower trading volume.
At $19,270, Bitcoin is currently up 0.20% over the last 24 hours. BTCUSD has a $23 billion 24-hour trading volume, which is a 12% decrease from the previous day. Until next week, when the market can make its next move, BTC will likely hold the $19k support.
With no change in the previous day, Ethereum is once more trading above the $1,300 support. The trading volume for ETHUSD over the past 24 hours has decreased by 7% to $8.6 billion. This week, ETH has continued to track BTC’s price movement.
The fear and greed index is at 23, the same level as it was one month ago, indicating that the market is currently relatively healthy.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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