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Coinbase stock surges after favorable federal ruling for Grayscale

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 54 Views

In the final moments of the trading session on Aug. 29, the value of COIN stood at $85.13 per share, a jump of 15% over the previous day’s close.

Coinbase’s stock experienced a significant surge on Aug. 29 after reports emerged that a federal judge had ruled in favor of Grayscale in its legal dispute with the United States Securities and Exchange Commission.

In the final moments of the trading session on Aug. 29, the value of COIN stood at $85.13 per share, marking an increase of over 15% over the previous day’s close. Coinbase, the largest cryptocurrency exchange in the U.S., has been publicly listed on the Nasdaq since 2021.

On Aug. 29, a federal court ruled that the SEC did not provide a consistent justification for rejecting Grayscale’s request to transform its Bitcoin (BTC) trust into a traditional exchange-traded fund (ETF).

Screenshot showing Coinbase stock’s price increase. Source: Coinbase

The verdict, perceived as a victory for the cryptocurrency sector by investors, fuelled hopes of the potential arrival of a Bitcoin ETF. Coinbase has been chosen as the potential custodian and partner for sharing surveillance data among some candidates aiming to introduce an ETF.

If the ETFs are approved, the San Francisco-based company will share data related to trading, clearing operations and customer identification. The collaborative effort aims to mitigate market manipulation risks and ensure the secure storage of the Bitcoin supporting the funds’ shares. 

A spot Bitcoin ETF remains absent in the U.S. due to the SEC’s hesitancy in granting approval. At present, only cryptocurrency ETFs linked to futures contracts, enabling investors to speculate on future digital asset prices, are accessible within the country.

Related: SEC’s first deadlines to approve 7 Bitcoin ETFs coming over the next week

Nevertheless, investors are seeking an investment instrument that provides direct exposure to Bitcoin. BlackRock, the world’s largest asset manager, joined numerous prominent applicants in June vying for SEC approval. CEO Larry Fink noted strong demand from clients for cryptocurrency exposure.

As of the time of writing, Bitcoin was trading at $27,982 per coin, marking a more than 7% increase over the past 24 hours, according to CoinMarketCap. Despite this, the largest cryptocurrency by market capitalization remains significantly lower, nearly 60%, compared with its November 2021 peak of $69,044. 

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