Bitcoin experienced a strong rally after a US court ruled that the SEC was wrong in denying Grayscale's request to convert its bitcoin trust into an ETF. Prior to the ruling, nearly 30,000 BTC worth $822 million were moved to addresses tied to centralized exchanges, indicating that some traders anticipated the price boost and prepared for it by moving coins to exchanges.

Grayscale has won a significant victory against the US SEC regarding the conversion of its Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF. This has led to a rally in the GBTC share price, which closed at $20.56 on Tuesday, August 29, with a reduced discount to the fund's underlying token holdings.

Data monitored by Santiment shows that whales and giant whales may have knowledge of the results of Grayscale and SEC lawsuits. On the day before the news was released, wallets holding 10-100,000 BTC accumulated $388.3 million in BTC. As a result, they received a generous return and the price of BTC jumped by 6%.

Grayscale has won a historic victory in the DC Court, which ruled that the SEC cannot deny its Bitcoin Trust GBTC conversion to a spot Bitcoin ETF. However, this does not automatically mean that GBTC will convert to a spot Bitcoin ETF. The SEC has two options if they want to stop Grayscale from proceeding with the spot Bitcoin, which includes revoking the approval of Bitcoin Futures ETFs or rejecting based on previously unexplored grounds. The victory has caused the Bitcoin price to surge by 6%, but industry experts have mixed opinions on whether Grayscale will secure approval for the product from the SEC.

According to the OKX market, the cryptocurrency market rose across the board last night, with the following mainstream currencies performing as follows: BTC is currently reporting 27,610 USDT, a 24-hour increase of 5.70%; ETH is currently reporting 1,721.10 USDT, a 24-hour increase of 3.91%; LTC is currently reporting 68.01 USDT, a 24-hour increase of 3.97%; XRP is currently reporting 0.53435 USDT, a 24-hour increase of 2.59%; BCH is currently reporting 222.46 USDT, a 24-hour increase of 16.39%; SOL is currently reporting 21.662 USDT, a 24-hour increase of 5.15%; DOGE is currently reporting 0.06592 USDT, a 24-hour increase of 3.76%; MATIC is currently reporting 0.5863 USDT, a 24-hour increase of 4.25%.

Bloomberg analyst James Seyffart wrote on X platform (formerly Twitter) that it is currently uncertain whether the SEC will make a new decision in the coming weeks or months, or require Grayscale to submit a 19b-4 form (used to notify regulatory agencies of proposed rule changes).

Grayscale's court victory has boosted GBTC trading volume. As of the close of trading on the same day, the daily trading volume of Grayscale's GBTC reached its highest level since June 21, 2022. GBTC rose nearly 17% in secondary trading, reaching $20.56. Based on Grayscale's per-share holdings, the company's stock price rose 7.18% to $25.09. As a result, assets increased from $16.2 billion the previous day to $17.4 billion.

Grayscale Investments' victory against the SEC has raised hopes for the approval of a spot bitcoin ETF in the US. However, the SEC can still appeal the decision, which may delay the ETF's introduction. The court ruled that the SEC's approval of bitcoin futures funds but not Grayscale's Bitcoin Trust conversion was "arbitrary and capricious". While some experts believe that the introduction of spot bitcoin ETFs in the US is now more likely, the court's decision does not mandate the approval of GBTC's conversion to an ETF. The SEC may require Grayscale to submit a 19b-4 form or issue a new decision in the coming weeks or months, and may still deny the conversion based on new reasons such as concerns about bitcoin custody.

According to data released by analyst Ali, before the announcement of the legal outcome between Grayscale and the SEC, approximately 30,000 BTC were sent to a cryptocurrency exchange, increasing the exchange's supply from 1.13 million BTC to 1.16 million BTC.

Shares of Coinbase surged by up to 14% on Tuesday following the news that Grayscale Investments had won a court battle against the Securities and Exchange Commission in relation to its bid to launch a spot bitcoin exchange-traded fund. If spot bitcoin ETFs become a reality, Coinbase could potentially benefit from the general sense of optimism across the digital currencies market. <br>