Tuesday saw a 7% increase in Coinbase shares as investors were encouraged by a court decision in a Bitcoin spot ETF lawsuit, which may also help the cryptocurrency exchange.
By the end of the business day on Tuesday, the cryptocurrency company must also file its final response to the SEC’s response to Coinbase’s move for dismissal.
During Tuesday’s early trade, MicroStrategy, another company vulnerable to cryptocurrencies, and Grayscale Bitcoin Trust also enjoyed double-digit increases.
Exchange shares for cryptocurrencies Moneybase
Coinbase Stock Up 7% After Grayscale ETF Approval,Coinbase Stock Up 7% After Grayscale ETF Approval
increased by almost 7% on Tuesday afternoon as the stock was boosted by hopes for the long-awaited approval of a bitcoin spot ETF. For the business, which has been battling the Securities and Exchange Commission in federal court in Manhattan, it may be a turning point.
Grayscale’s Bitcoin Trust shares
also increased by about 5% in early trade on Tuesday. On Monday, a judge’s order allowing the SEC to examine Grayscale’s proposed Bitcoin ETF became official, formalising the company’s victory in federal appeals court.
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That final decision also helped to boost Coinbase’s stock price. The performance of Coinbase’s stock frequently reflects that of the larger cryptocurrency markets. As one of the biggest cryptocurrency custodians, the business has been approached by many potential exchange-traded funds (ETFs), including BlackRock’s planned Bitcoin ETF.
The SEC has been under fire from the business community and Congress for what is seen as a “regulation-by-enforcement” strategy.
Supporters claim that many cryptocurrencies are in fact securities and that more regulation is not necessary to establish the SEC’s jurisdiction, while critics claim that the government is punishing cryptocurrency exchanges in the aftermath of FTX’s failure.
The dispute over jurisdiction has lowered the stock values of firms exposed to the cryptocurrency market; Coinbase has increased by about 119% so far this year, but it is still much below its pre-crypto-winter levels. Micromanagement
, another company susceptible to the cryptocurrency market, witnessed a 12% increase in shares during Tuesday morning trade, but they are still down from 2022 levels.
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Additionally, Coinbase needs to submit one final document in support of their appeal. In August, the corporation filed to have the SEC’s claims dismissed, claiming, among other things, that the assets in question did not meet the Howey Test’s definition of securities and that the SEC’s action was outside the agency’s purview.
Retaliating, the SEC said that Coinbase “did” arrange “transactions involving investment contracts.”
Coinbase has until the end of Tuesday to respond in federal court.
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