BTCUSD quotations have been consolidating near ascending channel support as investors wait for disputable issues between the crypto asset manager and the regulatory agency to be resolved.
Grayscale Investments urged the U.S. Securities and Exchange Commission (SEC) to expedite approval of its proposed exchange-traded fund that would track bitcoin, following the court victory of the crypto asset manager over the agency.
A three-judge panel of the U.S. Court of Appeals District of Columbia Circuit in Washington, D.C., ruled last week that the SEC was wrong to reject Grayscale's proposed bitcoin-ETF without explanation. The situation has driven up the price of the major cryptocurrency by nearly 7%.
The ruling requires the SEC to review Grayscale's application, though the agency still has time to appeal the court's decision. Last week, the Commission said it was ready to review the decision.
A spot bitcoin-ETF will give investors access to the world's largest cryptocurrency without having to own it. The SEC rejected all applications for spot bitcoin ETFs, responding that the applicants hadn’t demonstrated the ability to protect investors from market manipulation.
However, the agency approved bitcoin futures ETFs based on a market surveillance arrangement with the Chicago Mercantile Exchange, where the majority of trading in cryptocurrency futures takes place. Grayscale argued that the same structure should suit its spot ETF because both products depend on the underlying value of bitcoin.
The Court of Appeals ruled that the SEC arbitrarily denied Grayscale's petition because it failed to explain how the two arrangements differed.
If the SEC quickly approves a bitcoin-ETF, as a crypto asset manager has urged, it could attract more institutional investment in digital currencies and create additional demand for bitcoin.
BTCUSD quotations are corrected in a broad upward corridor on the D1 timeframe. Fundamental factors may create conditions for a price pullback from the channel support toward trend resistance.
Signal:
Short-term prospects for BTCUSD are buying.
Target is at the level of 30,240.
Part of the profit should be fixed around the level of 28,100.
Stop-loss is around the level of 23,850.
The bullish trend is short-term, so choose a trading volume of no more than 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
