Grayscale won the lawsuit against SEC

Hello Lions,

If you have been roaming in this wild world of cryptocurrency for quite a time, you must have seen that even a single day can bring significant changes in this world. Everyone knows that cryptocurrency is a volatile world where some assets can even move 50% up or down within minutes or even go null without any warning or sign. That’s why some get scared to get involved with crypto while some others gets involved deeply for the same reason. Recently, the bitcoin (BTC) experienced an impressive uptrend in its price and the sudden movement inits price helped it soar by almost $1,500 within just a matter of hours. This sudden jump came after a good news got circulated in the crypto world regarding a court of securities and exchange commission (sec) and Grayscale where Grayscale won the lawsuit against SEC regarding its Bitcoin spot ETF related application. In this article, I will d into this case and its potential impact on various aspects of the cryptocurrency market.

SEC and FED Influence

Before this sudden surge, the global cryptocurrency market was already fighting with several challenges. Crypto is already in the bear phase for over 490 days now, making it’s enthusiasts and investor depressed and sad and not only that, on tip of this frustrating time, The securities and exchange commission (sec) had been taking a tough stance for over quite some time now on cryptocurrencies, while on the other hand, the federal reserve system (the fed) is being busy all the time raising the interest rates. Getting combined together, these notorious factors created a harsh environment where many investors felt it unsafe to hold or invest in crypto and many are even forced to sell their assets, which thus certainly resulting in a drop in bitcoin's and many other crypto assets value.

What is Grayscale

After reading the news and being quite happy with the sudden uptrend, I also got interested to know about Grayscale because like many of you living outside USA, I also didn't have any knowledge about this, and here’s what I found…

Grayscale bitcoin Trust is a giant financial trust entity that is one of the very first securities that is solely invested in Bitcoin only and they derive value from the price of BTC. They enable their investors to gain exposure into the cryptocurrency world through BTC in the form of security and enable them to passively invest in it. They invest in BTC as a security and avoid its investors from the challenges of buying, storing or safekeeping their assets directly.

The assets in form of bitcoins that Grayscale holds are completely stored in cold wallets or in offline storages and in this matter, they have collaborated with Coinbase Custody Trust Company, LLC, as their custodian. As a matter of fact, right now Grayscale is managing over a total of 16.3 billion US dollars of assets under them and have a 26.79% trailing in last 12 months, even in this bear market. The market price per share of Grayscale is currently trading at 18.71$ as on 31/08/2023 with a -5.07% change in price, obviously because of the current price correction and they have given a whopping 3967.39% return since their inception and 49.08% return in last 12 months. Currently, GBTC own a total of 643,572 BTC and is one of the largest bitcoin holders in current world. Also note that a total of 62 institution shareholders and owners has tied up with GBTC as per securities and exchange commission (sec) data and among the largest shareholders some great names are - Horizon Kinetics Asset Management LLC, Ark Investment Management LLC, ARKW - ARK Next Generation Internet ETF etc.

Anyways, coming back to the case, among all of these uncertainties that we are facing in cryptocurrency world right now, Grayscale as a prominent player in the crypto space has uplifted our mood a little bit by recently making headlines by filing and winning a case against the securities and exchange commission (sec). This move has not only given hope to the global cryptocurrency community but also brought hope for potential future investors as well. This incident also suggests that the much-anticipated spot Exchange-Traded Fund (ETF) may finally become a reality and if it happens, the current scenario is about to change drastically. However, the Grayscale is not alone in this case advocating for the ETF and moreover, as expected, the entire cryptocurrency industry is closely watching this ongoing incident and the important court hearings. There are also speculations spreading around the web that the SEC could reach a final decision before the new year arrives.

BlackRock and World Economic Forum

Though there is optimism in the air regarding this case, some of us still remain cautious about the potential outcome if it goes against us. Another significant concern that is growing lately among many of us is that a large portion of the total bitcoin's value could end up concentrated in the hands of the wealthiest individuals in upcoming time and the convo regarding this is rising even more, particularly after BlackRock's recent involvement in cryptocurrency industry. Surprisingly, BlackRock has strong ties to the World Economic Forum (WEF) so if they are really coming into the crypto industry, we may see a great formation of global alliances to drive a shared agenda and probably regulations upon crypto in future.

Like all of you, I am also positive with the future of cryptocurrency and hope this great win of Grayscale against securities and exchange commission (sec) is will bring good results in near future. I hope you liked reading post, let me know your thoughts and opinions in the comments below and ai will be seeing you all in my next post!

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