Grayscale Challenges SEC Over BTC ETF as Bitcoin Faces Resistance

Pathik Bhattacharya
Pathik Bhattacharya Published on October 04, 2023 07:07 AM

Grayscale is working to transform its Bitcoin (BTC) Trust into an exchange-traded fund, and it now plans to do the same with its Ethereum (ETH) product.

Grayscale Challenges SEC Over BTC ETF as Bitcoin Faces Resistance
Source: Unsplash

Grayscale, a major player in the cryptocurrency market, has taken legal action against the Securities and Exchange Commission (SEC) over the SEC's refusal to convert Grayscale's Bitcoin Trust into an exchange-traded fund (ETF).

The core issue revolves around the SEC's concerns regarding potential fraud and manipulation on unregulated exchanges, leading to their cautious stance on approving spot Bitcoin ETFs.

Spot Bitcoin ETF Relies on SEC's Decision 

The SEC's regulatory decisions hold substantial influence over the cryptocurrency market, especially concerning the introduction of Bitcoin ETFs and other crypto-related ETFs. Grayscale's legal challenge reflects the increasing tension within the industry.

Insights from industry experts like Bradley Duke from ETC Group, Gautam Chhugani from Bernstein, and Dave Weisberger from CoinRoutes provide a comprehensive view of this complex issue.

“As we file to convert ETHE to an ETF, the natural next step in the product’s evolution, we recognize this as an important moment to bring Ethereum even further into the U.S. regulatory perimeter,” said Grayscale CEO Michael Sonnenshein in a Monday statement.

The outcome of this legal battle holds implications for the future of cryptocurrency ETFs and the broader market. Whether it leads to a shift in the SEC's regulatory stance remains uncertain. Stakeholders across the cryptocurrency landscape are closely monitoring developments that could potentially impact their investment strategies.

Bitcoin Price Analysis

As per CoinStats, Bitcoin is currently trading at $27,409.45, down -0.91% in the previous 24 hours, with a market size of $534,583,567,714.985. It has a circulating supply volume of 21,000,000 BTC coins and a maximum supply volume of 21,000,000, as well as a 24-hour trading volume of $15,708,187,724.497.

bitcoin price chart

Source: CoinStats

Meanwhile, Bitcoin encountered resistance at the critical $28,500 level, failing to sustain upward momentum. This led to the formation of a short-term top, prompting a downside correction below $28,000. The price has now approached the $27,200 support zone, indicating consolidation after recent losses.

Bitcoin currently trades below $27,500 and the 100-day Simple Moving Average (SMA). A short-term bearish trend line is forming with resistance around $27,500. The 23.6% Fibonacci retracement level presents another hurdle in the path of recovery. A breakthrough could propel Bitcoin towards the $28,500 resistance.

The resistance zone near $27,500 holds significance, and a successful breach could pave the way for further gains. However, failure to surpass this level might lead to additional downward movement. The $27,200 support is crucial, followed by more substantial support at $27,000. A break below $26,800 could set the stage for a descent towards $26,000.

bitcoin price chart

Source: TradingView


In Conclusion, the uncertainty of legal battles in the regulatory arena and Bitcoin's technical struggles at key resistance levels highlight the dynamic nature of the cryptocurrency market.

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