Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Coinbase's stock saw a notable rise on Aug. 29 following reports that a federal judge had ruled in favor of Grayscale in its legal battle with the SEC.
In the closing moments of the trading session on Tuesday, Aug. 29, COIN was valued at $85.13 per share, reflecting an increase of over 15% from the previous day’s closing price. Coinbase, the largest cryptocurrency exchange in the U.S., has been publicly traded on the Nasdaq since 2021.
On Aug. 29, a federal court determined that the U.S. Securities and Exchange Commission failed to provide a consistent rationale for denying Grayscale’s application to convert its Bitcoin Trust into a conventional Bitcoin ETF.
Screenshot showing Coinbase stock price increase. Source: Coinbase
The ruling, viewed as a win for the cryptocurrency industry by investors, sparked optimism regarding the possible introduction of a Bitcoin ETF in the financial market. Among those looking to launch a Bitcoin ETF, Coinbase has been selected as a potential custodian and partner for sharing surveillance data.
Related Posts
As a result, the San Francisco-based company would participate in the exchange of information related to trading, clearing activities, and customer identification. This collaborative initiative aims to reduce the risks of market manipulation and ensure the secure custody of the Bitcoin backing the fund’s shares.
A Bitcoin spot ETF is currently unavailable in the U.S. due to the SEC’s reluctance to grant approval. At this time, only cryptocurrency ETFs tied to futures contracts, which allow investors to speculate on future digital asset prices, are available in the country.
Related: SEC’s first deadlines to approve 7 Bitcoin ETFs coming over the next week
Nonetheless, investors are looking for an investment vehicle that offers direct exposure to Bitcoin. BlackRock, the largest asset management firm globally, joined several prominent applicants in June, seeking SEC approval. CEO Larry Fink highlighted strong client demand for cryptocurrency exposure.
As of the time of writing, Bitcoin was trading at $27,982 per coin, representing an increase of more than 7% in the past 24 hours, according to Coinmarketcap data. However, the largest cryptocurrency by market capitalization remains significantly lower, nearly 60%, compared to its peak of $69,044 in November 2021.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
