Bitcoin Rallies as Federal Court Clears Path for First Bitcoin ETF in the U.S.

Bitcoin experienced a significant rally of almost 6% on Tuesday following a pivotal decision by a federal court to allow Grayscale Investment to launch the first bitcoin exchange-traded fund (ETF) in the United States.

The cryptocurrency, with the symbol BTCUSD, surged to a high of $27,790 at the time of writing, marking its highest level since August 17, according to data from CoinDesk. While bitcoin has achieved an impressive 57% increase in value year-to-date, it remains nearly 60% below its all-time high reached in 2021.

In a significant turn of events, an appeals panel in Washington overturned the decision made by the U.S. Securities and Exchange Commission (SEC) to prohibit the ETF. The SEC has previously given the green light to various ETFs based on bitcoin futures, but it had not granted approval for one directly investing in bitcoin due to concerns about potential market manipulation.

In June, prominent asset managers including BlackRock, Fidelity, WisdomTree, VanEck, Invesco, Ark Invest, and 21 Shares took action by submitting or resubmitting their applications for bitcoin ETFs. These moves indicate the increasing interest and demand for regulated investment products that provide exposure to the world’s largest cryptocurrency.