Grayscale’s Victory Over SEC Drives Coinbase’s Shares Up by 14%

Coinbase’s stock jumped 13.9% yesterday, the trigger for this surge was Grayscale Investments successfully pushing for Coinbase’s Bitcoin trust to become an ETF, which was in contrast to the Securities and Exchange Commission’s (SEC) initial stance.

Since the start of the year, the cryptocurrency exchange’s capitalization has risen by 139.33%.

This resulted in the price of bitcoin rising to $27,500, with an added 6% increase within an hour.

This verdict increases the chances of approval for other applications geared towards launching similar products, with Coinbase playing a large role in joint supervision agreements.

This mechanism, established to reduce market manipulation, was an integral part of BlackRock Inc.’s proposal, which also requested Coinbase’s assistance. So far, however, the SEC has not given the go-ahead for any spot bitcoin ETFs.

The sole exceptions are for futures products from Valkyrie Investments and ProShares. Former SEC Chairman Jay Clayton and experts from Bernstein predict chances for a plethora of new applicants to be very high.

Cathie Wood from ARK Invest and analysts from Matrixport even speculated a positive verdict for a selection of the applications.