BTC price volatility returns as good news over GBTC’s conversion to a spot Bitcoin ETF sends markets rallying.

Bitcoin prices approached levels close to the highest point in a fortnight on August 29, triggered by reports of Grayscale, a digital asset management firm, emerging victorious in a legal battle against regulatory authorities in the United States.

The SEC’s decision to reject the Bitcoin ETF was deemed “random and unpredictable.”

Data obtained from Cointelegraph Markets Pro and TradingView captured an immediate BTC price response to the development, with BTC/USD surging by $1,700 within approximately half an hour.

This news disrupted a stagnant Bitcoin trading atmosphere that had persisted following abrupt losses in the middle of August.

A judgment by the United States Court of Appeals for the District of Columbia Circuit declared that the U.S. Securities and Exchange Commission was incorrect in dismissing Grayscale’s application to introduce an exchange-traded fund (ETF) backed by the Bitcoin spot price.

“An unverified copy circulating online asserts that the SEC’s denial of Grayscale’s proposal was both arbitrary and capricious, as the regulatory body failed to elucidate its divergent treatment of analogous products.”

“We therefore grant Grayscale’s petition and vacate the order.”

In this manner, Grayscale becomes part of the lineup of companies aspiring to introduce the inaugural U.S. Bitcoin ETF backed by the spot price, while the SEC has not yet granted authorization for any submitted request.

As of the current moment, the BTC/USD pairing hovered around $27,300, achieving a peak of $27,723 on the Bitstamp exchange.

Information extracted from the Binance BTC/USD order ledger shared on X (formerly known as Twitter) by monitoring source Material Indicators highlighted the upswing. Across all order categories, there was an elevation in purchasing activity within a market characterized by a scarcity of liquidity.

“A half-year assessment of order book information reveals limited liquidity towards the higher end, presenting a relatively straightforward opportunity for revisiting the $30s range. However, there hasn’t been a sufficient shift in sentiment to facilitate this action, as the market remains apprehensive about the potential consequences if #BTC begins generating lower lows,” was a section of the analysis disseminated shortly before the Grayscale declaration.

Analyst heralds BTC price “bull cycle” catalyst

Extending the response, Michaël van de Poppe, the originator and chief executive officer of trading enterprise Eight, proposed that the court’s verdict might yield a favorable influence on the ongoing ETF submissions, particularly with regards to the application from the globe’s largest investment management company, BlackRock.

“In an unconventional twist, we could be standing at the brink of the initiation of the bullish phase due to this development,” he condensed for followers on X, as a fragment of his remarks accompanying a specialized video update.

As covered by Cointelegraph, Grayscale’s protracted and gradual legal struggle with the SEC involved CEO Michael Sonnenshein and others asserting their determination to persist until authorization was granted to transform their present Bitcoin investment instrument, the Grayscale Bitcoin Trust (GBTC), into an ETF.

“Expressing our gratitude to all those who’ve been part of this voyage, particularly our investors,” Sonnenshein penned on X after the announcement of the SEC’s setback.

“We are grateful for your support and encouragement. Next up: our legal team is actively reviewing the Court’s opinion.”

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