Coinbase (COIN) And Bitcoin-Related Stocks Soar Following Grayscale’s Victory
August 30 2023 - 8:00PM
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Coinbase and other crypto-related companies witnessed a significant
rise in stock prices following reports that Grayscale has emerged
victorious in its lawsuit against the United States Securities and
Exchange Commission (SEC). On Tuesday, August 29, the US District
of Columbia Court of Appeals ruled that the SEC did not provide a
“consistent justification” for rejecting Grayscale’s request to
convert its Bitcoin Trust (GBTC) into a spot exchange-traded fund
(ETF). This decision brings the asset management firm closer to
offering a spot Bitcoin ETF in the US. The price of Bitcoin reacted
positively to this development, breaking above and beyond the
$26,000 mark. According to CoinGecko data, the premier
cryptocurrency is currently valued at $27,136, reflecting a 3.8%
price gain in the past week. Coinbase (COIN) Rally 15% After
Grayscale’s Win The value of Coinbase’s stock COIN stood at $84.70
by the close of the trading session on Tuesday, representing a
15.2% increase from the day’s opening price. The crypto
company’s stock surged by nearly $13 per share, climbing from $73.5
per share to almost $86 during the day, according to Coinbase’s
stock information. Coinbase, the largest cryptocurrency exchange in
the United States, became publicly listed on Nasdaq in 2021.
Related Reading: Bitcoin Insider Trading Suspicions Take Root
Following Grayscale Win, What’s Happening? This price jump is
believed to have been triggered by the success of Grayscale’s
appeal against the United States SEC, as mentioned above. While the
court’s decision doesn’t automatically convert the asset manager’s
Bitcoin Trust to a spot ETF, it is still perceived as a significant
milestone in launching the financial product in the North American
country. If spot Bitcoin ETFs receive approval from the Securities
and Exchange Commission, Coinbase could become one of the biggest
winners due to its surveillance-sharing agreements with some
applicants, including the world’s largest asset manager, Blackrock.
These arrangements aim to mitigate potential market manipulation
risks – a concern raised by the SEC after the initial Bitcoin ETF
submissions. Marathon and Riot Witness Surge In Stocks Price
Coinbase was not the only cryptocurrency company that enjoyed the
ripple effect of Grayscale’s legal triumph. Bitcoin mining
companies, like Marathon Digital Holdings (MARA) and Riot Platforms
(RIOT), also felt a positive impact on their stock prices.
Favorable judgments, such as the latest Grayscale victory, often
boost the interest and optimism of investors in the cryptocurrency
industry and crypto-related products. As a result, companies
operating in the cryptocurrency space, including Bitcoin mining
firms, are likely to receive increased attention from investors.
Related Reading: Renowned Economist Explains Why Grayscale’s Win Is
Not Good For Bitcoin Price According to TradingView, the value of
MARA soared by about 30% on Tuesday, closing at $13.69 per share by
the end of the day’s trading session. Likewise, the RIOT price
experienced an 18.2% rally, climbing from $10.39 per share to
almost $12.3 at the end of the day. As of this writing, the
Marathon Digital Holdings stock is trading at $12.94 per share,
reflecting a 5.2% decrease since the opening of Wednesday’s (30th
of August) trading session. Meanwhile, Riot Platforms’ stock has
currently declined by 4% to trade at $11.8 per share. Coinbase
(COIN) stock price on the daily timeframe | Source: Coinbase Global
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