Cryptocurrency prices jumped over the weekend and related stocks rallied Monday on renewed hopes that a bitcoin exchange-traded fund is on the horizon. Bitcoin price bolted back to $28,500, while ethereum also climbed.
The Securities and Exchange Commission declined to appeal its D.C. Circuit court loss against Grayscale Investments, Barron's and Reuters reported late Friday, citing a source close to the matter. The SEC faced a midnight deadline Friday to request a new hearing against Grayscale.
The panel of judges previously ruled in August that the SEC arbitrarily rejected Grayscale's application to convert its Grayscale Bitcoin Trust into a spot bitcoin ETF.
The appeals court is now expected to issue a mandate regarding how it will execute the decision, which will likely instruct the SEC to revisit Grayscale's application, Reuters reported.
It doesn't necessarily mean Grayscale's application is set to be approved. But it is another indicator the SEC has moved closer to allowing spot bitcoin ETFs to launch.
Several other firms have crypto ETF applications in the works.
Asset management behemoth BlackRockpartnered with crypto exchange Coinbase on a bitcoin ETF application in June. Invesco, WisdomTree, VanEck and Cathie Wood's ARK Invest also applied for bitcoin ETFs.
Bitcoin Price
The bitcoin price leapt more than 5% over the past 24 hours as of Monday afternoon to surge back near $28,500 level — its highest price since mid-August. Bitcoin briefly rallied near $30,000 after false rumors that the SEC approved BlackRock's spot bitcoin ETF application began circulating on social media platform X, formerly known as Twitter.
BlackRock confirmed to the Wall Street Journal that its iShares Spot Bitcoin ETF application is still under review.
Cryptocurrency prices broadly climbed on the news. Ethereum rose 2% Monday to trade around $1,590.
Coinbase stock swung 2.4% higher Monday.
The Grayscale Bitcoin Trust spiked 7.3%.
Bitcoin miner Marathon Digital bolted 5% Monday.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
