The latest report states that the price of Bitcoin has surged by 5% to reach $27,000 following a United States court decision that found the Securities and Exchange Commission (SEC) guilty of rejecting Grayscale’s ETF application.

Comments from different quarters have said that the court’s decision represents a significant advancement in the discussion surrounding Exchange-Traded Funds (ETFs) for cryptocurrencies and their position within the conventional financial system.

Recall that the SEC, while regularly rejecting requests for spot Bitcoin ETFs, has approved ones based on Bitcoin futures. A report from Reuters says that by tracking contracts to purchase or sell Bitcoin at predetermined prices, these futures ETFs give investors exposure to the cryptocurrency without requiring them to take direct ownership.

Grayscale petitioned the court to contest the SEC’s decision over its spot Bitcoin ETF application. A report from Reuters also said there will be a waiting period before the organization makes a decision that might last up to 240 days.

The dynamics surrounding the approval procedure for spot Bitcoin ETFs have changed due to the court’s recent decision, adding another layer of uncertainty to an already complex regulatory environment. However, WisdomTree, Bitwise, Invesco, BlackRock, VanEck, and Fidelity have been reported to be among the top companies that have submitted spot Bitcoin ETF applications to either Nasdaq or CBOE Global Markets.

Grayscale’s Lead Counsel Speaks As Cryptocurrency Community Keeps Watch

Donald Verrilli Jr., the company’s principal attorney, claimed in March that a spot Bitcoin ETF would improve investor safety by putting the market under the control of the Chicago Mercantile Exchange (CME). Verrilli said that this regulation would assist in protecting investors from possible market manipulation and other dangers related to bitcoin trading.

These companies have publicly declared they want to take advantage of the rising demand for Bitcoin investment vehicles that serve institutional and ordinary investors. Market analysts and the cryptocurrency community are watching this decision to see if it could be a precedent for future Bitcoin ETFs and other financial instruments, including cryptocurrencies.

According to Donald Verrilli Jr., Grayscale’s lead counsel, when interviewed, said the court was officially informed of a BTC ETF spot in March. He noted its reasons are to better protect the investors against eventualities and help them benefit from the Chicago Mercantile Exchange (CME) market oversight.

It has also been established that Americans now invest in BTC through less unregulated exchanges. SEC, on their part, says that Grayscale lacks the right data to decide if the agreement for the CME futures surveillance can pick any case of manipulation in the spot market.

SEC had argued that the CME assesses the condition and the price performance of the futures market, using real-time analysis to detect and prevent price distortions and the distortion often caused by market manipulation.