Traders holding short positions have lost $120 million in just 24 hours following a historic ruling that may pave the way for a bitcoin ETF. The ruling, which saw a panel of judges side with Grayscale in their suit against the SEC, could allow the $50 billion firm to convert its Bitcoin investment trust to a direct ETF. Despite the SEC reviewing the decision, many observers believe it opens the door to an eventual Bitcoin spot ETF. <br>

Grayscale has won a significant victory against the US SEC regarding the conversion of its Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF. This has led to a rally in the GBTC share price, which closed at $20.56 on Tuesday, August 29, with a reduced discount to the fund's underlying token holdings.

Grayscale Investments LLC has won a significant legal battle and can now launch the first Bitcoin exchange-traded fund (ETF) in the US, potentially attracting more investment. Bitcoin's price rose by 6% following the announcement, with a 24-hour trading volume of over $17.5 billion. The SEC's decision to halt the ETF was overruled by a three-judge appeals panel in Washington, allowing Grayscale to create and redeem shares in tandem with fluctuating demand. The move to an ETF could unlock around $5.7 billion from Grayscale's $16.2 billion trust, marking a milestone in the mainstream financial world's ever-evolving cryptocurrency landscape.

The U.S. Securities and Exchange Commission (SEC) is expected to provide updates on several spot Bitcoin ETF filings in early September 2023, reigniting the debate around the likelihood of ETF approvals. However, there is a high probability that the SEC will delay the decision with no concrete updates, including for Blackrock's application.

According to Morningsta data, the flow of trading products related to cryptocurrency exchanges in Europe has increased since BlackRock submitted a Bitcoin ETF application in the United States. The net inflow of cryptocurrency-related ETPs registered in Europe in June reached 150 million euros, a new high since March 2022. According to CoinShares data, a similar trend has also appeared globally, with a total capital inflow of 610 million US dollars (560 million euros) in June and July.

The US Securities and Exchange Commission (SEC) has delayed its decision on the proposed spot Bitcoin ETF by Ark Investment Management. The SEC announced a 21-day comment period for the ARK 21Shares Bitcoin ETF in a statement on August 11. The company first applied for a spot Bitcoin ETF in May. The SEC has until January 2024 to make a final decision and noted that regulation of the spot Bitcoin market is not a requirement for approval. Other large firms, including BlackRock, have also applied for spot Bitcoin ETFs, and some have updated their applications to include Coinbase as a custodian.

According to Bloomberg ETF analysts, the chances of a spot Bitcoin ETF being approved in the US have increased from 1% to 65% in recent months due to new developments in the crypto market and the refiling of ETF applications by Blackrock and other institutional giants. The timing of the Grayscale case dates and their victory over the SEC in Federal court could also play a role in the approval of a Bitcoin ETF. The spot Bitcoin ETF race has attracted the interest of major financial institutions, and some analysts believe that institutional giants like Blackrock could be the key to approval.

BlackRock and other major players on Wall Street are vying to offer the first Bitcoin ETF on the spot market, with Coinbase as their surveillance-sharing partner and custodian. Despite facing a lawsuit from the SEC over unregistered securities, Coinbase is still considered a legitimate and crucial institution by those competing in the ETF race.

BlackRock, the world's largest asset manager, has appointed two new executives to its Asia team, with Dennis Quah taking on the role of Singapore Wealth head and Mandy Lui becoming head of Greater China Wealth. Quah will focus on building partnerships with insurers, consumer banks, and private banks, while Lui will lead the department from Hong Kong.

The recent ruling by a US judge that XRP is not a security and the acceptance of BlackRock's bitcoin ETF application by the SEC has caused a 25% surge in XRP's price and increased volatility in digital assets. According to Greg Magadini from Amberdata, regulatory events have a significant impact on prices and movement in the crypto market.