Coinbase Stocks Rally As Grayscale Scores Win Against SEC

Shares of cryptocurrency exchange Coinbase saw a dramatic late-day rally on Monday, closing up over 15% following positive news for the crypto industry. Coinbase stock hit $85.13 at market close, a jump of nearly 13% from its opening price.

The surge came after reports emerged that crypto asset manager Grayscale won a legal dispute with the Securities and Exchange Commission (SEC) over a proposed bitcoin exchange-traded fund (ETF). According to the latest data, Coinbase stock has plunged by 1.1% and stands at $83.71 at press time.

Also read: Crypto Asset Manager Grayscale Wins Lawsuit Against the SEC

Grayscale CEO optimistic about Bitcoin ETF approval

On Monday, a federal judge ruled the SEC must re-evaluate its previous rejection of Grayscale’s application to convert its Bitcoin Trust into a spot Bitcoin ETF. The court decision was seen as a watershed moment in the yearslong battle for regulatory approval of crypto ETFs.

In an interview after the ruling, Grayscale CEO Michael Sonnenshein expressed confidence that the SEC already has the necessary tools to greenlight a spot bitcoin product like GBTC. The positive outcome for Grayscale bolsters hopes that a Bitcoin ETF could become a reality soon.

Also read: Grayscale Now Closer To a Spot Bitcoin ETF Launch: Report

As the largest US-based cryptocurrency exchange, Coinbase stands to benefit significantly from broader institutional adoption of crypto assets. The SEC’s approval of a bitcoin ETF would likely spur major new investments into the crypto space from Wall Street firms and mainstream investors.

  • COINBASE
  • GrAYSCALE

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