Coinbase's stock experienced a notable surge, climbing over 15%, following the recent federal court decision that favored Grayscale in its lawsuit against the SEC.
Coinbase Stocks Surged After A Federal Judge Favoured Grayscale In A Lawsuit Against The SEC
Coinbase's stock experienced a notable surge, climbing over 15%, following the recent federal court decision that favored Grayscale in its lawsuit against the U.S. Securities and Exchange Commission (SEC).
The price of COIN increased from $73.71 on Monday’s close to $85.13 per share just before the markets closed on Tuesday. It is currently trading at $83.83 at the time of writing. Coinbase, the largest digital asset exchange in the United States, has been publicly listed on Nasdaq since 2021.
The SEC's decision to deny Grayscale's request to convert its Bitcoin Trust into a spot Bitcoin Exchange-Traded Fund (ETF) was found to be inconsistent by the federal court on Tuesday. This decision creates the possibility for a Bitcoin ETF to be made available on Wall Street, which investors perceive as a success for the crypto sector.
Several applicants looking to start a Bitcoin ETF have picked Coinbase to act as the fund's custodian and surveillance-sharing partner. To reduce the danger of market manipulation and manage the storage of the Bitcoin that backs the fund's shares, this function would require sharing trading and clearing activity information as well as customer identifying data.
While the SEC has been hesitant to approve a Bitcoin spot ETF, investors are eager for an investment vehicle that directly exposes them to Bitcoin itself. Currently, only cryptocurrency ETF products tied to futures contracts, which speculate on the future prices of digital assets, exist in the U.S. market.
