A long-awaited bitcoin spot ETF clearance encouraged investors to buy more Coinbase shares, which rose roughly 14% on Tuesday morning. For the business, which has been battling the Securities and Exchange Commission in federal court in Manhattan, it might mark a turning point.
Tuesday morning trading saw a nearly 7% increase in shares of Grayscale’s Bitcoin Trust. A judge’s order that the SEC evaluate the company’s proposed Bitcoin ETF took effect on Monday, formalising Grayscale’s victory in federal appeals court.
The performance of the larger cryptocurrency markets frequently closely resembles Coinbase’s stock price, which was also boosted by that finalised decision. A number of potential ETFs, including BlackRock’s planned Bitcoin ETF, have chosen the business as one of the biggest cryptocurrency custodians.
Due to its alleged “regulation-by-enforcement” strategy, the SEC has come under fire from both the business community and Congress. In the wake of FTX’s demise, critics claim that the regulator is punishing cryptocurrency exchanges, while supporters counter that many cryptocurrencies are in fact securities and that additional regulation is not necessary to establish the SEC’s jurisdiction.