Grayscale Investments, a leading crypto asset manager, has won a significant victory in its battle against the United States Securities and Exchange Commission (SEC). Grayscale has been striving to convert its Grayscale Bitcoin Trust (GBTC) into a Bitcoin exchange-traded fund (ETF), but the SEC rejected its recent ETF application, citing concerns about security and fraud protection. However, a US appeals court judge, Neomi Rao, has accepted Grayscale’s argument that the SEC’s rejection was unfair and has granted the company’s request for a second review. While this is a positive development for Grayscale, it does not guarantee that its Bitcoin ETF will ultimately be approved.
In another noteworthy story, the parent company of Hit Network, which owns the “BitBoy Crypto” brand, has announced that it will no longer include YouTuber Ben Armstrong as its public face. The company cited issues of substance abuse and financial damage as the reasons behind the decision. Armstrong has faced a series of lawsuits, including a class-action lawsuit in which investors accused him of promoting FTX without disclosing his financial relationship with the exchange. There were also claims that Armstrong threatened the plaintiff’s lawyers and disregarded a federal judge’s orders to appear in court. The case is currently on hold.
Meanwhile, the SEC has decided to delay its decision on six applications for spot Bitcoin ETFs in the United States. The commission has extended its review period by an additional 45 days, pushing the final decision back to October. This news was followed by the SEC also delaying its decision on BlackRock, the world’s largest asset manager, regarding a similar ETF. Additionally, Bitwise has withdrawn its application for a Bitcoin and Ether Market Cap ETF following the SEC’s announcement of delays. Bitwise’s decision comes as a surprise, considering the recent positive market sentiment following Grayscale’s SEC win.
In another development, Robinhood, the popular crypto and stock trading platform, has bought back more than 55 million shares of its own company that were previously owned by Sam Bankman-Fried, the former CEO of FTX. The purchase cost Robinhood approximately $606 million and was finalized after the necessary paperwork was filed with the SEC. These shares, originally owned by Bankman-Fried and a co-founder of FTX, were seized by the U.S. Department of Justice in January. The purchase was approved by the U.S. District Court for the Southern District of New York without any legal complications.
In the cryptocurrency market, Bitcoin is currently priced at $25,610, Ether at $1,618, and XRP at $0.49. The total market cap stands at $1.03 trillion. Among the top 100 cryptocurrencies, the biggest gainers of the week are Toncoin (33.90%), Iota (13.13%), and Maker (12.33%). The top losers of the week are KuCoin Token (15.53%), Hedera (15.02%), and Astar (12.82%).
In conclusion, Grayscale’s victory in its lawsuit against the SEC, the removal of Ben Armstrong as the public face of BitBoy Crypto, the SEC’s delay in deciding on Bitcoin ETF applications, Bitwise’s withdrawal of its ETF application, and Robinhood’s purchase of shares from Sam Bankman-Fried are the top stories in the cryptocurrency industry this week.
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