The reason for the sharp growth of bitcoin has been revealed

On Tuesday evening, the flagship cryptocurrency showed a sharp rise. The reason for this is that the US Court of Appeals for the District of Columbia ruled in favor of the cryptocurrency investment fund Grayscale. The company accused the U.S. Securities and Exchange Commission (SEC) of unlawfully refusing to grant its application to convert the Grayscale Bitcoin Trust (GBTC) fund into a spot bitcoin ETF.

According to Coin Metrics, the price of bitcoin jumped by 7.15% to $ 27,852 after the court decision was announced. Following bitcoin, prices of other cryptocurrencies and shares of cryptocurrency companies also went up.

«The Commission has failed to adequately explain why it approved the listing of two bitcoin futures ETPs, but not Grayscale’s proposed bitcoin ETF,» the court ruling said. — «In the absence of a clear explanation, such a difference from the regulatory regime for similar products is unlawful. Therefore, we grant Grayscale’s petition for review and set aside the Commission's decision.»

In connection with this court decision, the regulator is obliged to reconsider Grayscale’s application for the creation of a bitcoin ETF. According to CNBC, the court’s decision increases the chances that the commission will approve similar applications from BlackRock, Fidelity, WisdomTree, VanEck, Invesco, and other cryptocurrency companies.

As of the morning of Wednesday, August 30, the flagship cryptocurrency is trading at $ 27,422. The asset’s market capitalization amounted to $ 533.9 billion, and traders executed daily trading deals worth $ 30.74 billion, a figure that soared by more than 182%.

The market dominance of BTC increased to 48.9%, and the global capitalization of the crypto industry grew by 4.13% to $ 1.09 trillion.