News
Bitcoin Surpasses $30,000 After Crazy Week for Crypto Investors
Bitcoin (BTC-USD) briefly topped $30,000 on Friday after the Securities and Exchange Commission dropped charges against two Ripple Labs cryptocurrency executives, another victory for the industry as it battles regulatory threats over several foreheads.
Bitcoin’s rise, which jumped 5% over the past day, propelled it above the $30,000 mark for the first time since August. Other digital assets also rose, including the XRP token (XRP-USD) issued by Ripple. Since the start of the year, bitcoin is up more than 80%.
The rally marked the end of a volatile week for crypto investors, who found reason to rejoice in a series of legal developments, market chatter and rumors involving the SEC, which is trying to crack down on a large scale the crypto industry. The regulator has pursued a number of large players, including Coinbase (PIECE OF MONEY) and Binance.
The Securities and Exchange Commission seal at the SEC headquarters in Washington. (Andrew Harnik/AP Photo, file) (ASSOCIATE PRESS)
The first development came last Friday when media reports suggested the SEC would not appeal a court ruling that improves asset manager Grayscale Investments’ chances of being able to launch a bitcoin spot exchange fund.
Asset managers have been trying for years to convince the SEC to approve a spot Bitcoin ETF, which would allow investors to gain exposure to the world’s largest cryptocurrency without having to own it. The SEC had rejected the various requests, arguing that the products were vulnerable to market manipulation.
“Once the SEC announced that they would not appeal, we saw a very attractive offer,” Sean Farrell, digital assets analyst at Fundstrat, told Yahoo Finance.
Then on Monday, a rumor circulated that giant fund manager BlackRock (BLACK) had received new SEC approval for a spot bitcoin ETF, which pushed bitcoin to nearly $30,000. Prices retreated when BlackRock denied it.
The SEC is still considering applications from BlackRock, Grayscale and a number of other asset managers; Investors expect the agency to rule on the requests by Jan. 10.
BlackRock headquarters in Manhattan. (STRF/STAR MAX/IPx) (STRF/STAR MAX/IPx)
“The time is right for a spot Bitcoin ETF,” Matt Hougan, Bitwise’s chief investment officer, said on Yahoo Finance Live earlier this week. Bitwise is among the companies seeking SEC approval.
“The SEC has previously been concerned about market manipulation and market immaturity, but the bitcoin market today is not the bitcoin market of a few years ago.”
The new rally in digital assets over the past 24 hours was sparked by a decision by the SEC on Thursday to dismiss its charges against Ripple co-founders Brad Garlinghouse and Chris Larsen, who were sued for helping Ripple sell XRP .
The story continues
The SEC had argued that the sale of the token amounted to a violation of US law because XRP was not registered as a security with the SEC.
The U.S. judge in the case, Analisa Torres, resolved some claims against the executives and Ripple in mid-July when she ruled that XRP was not a security when purchased by the general public.
But it also ruled partly in favor of the SEC by stating that XRP was in fact a security when sold to institutional investors. She later rejected an attempt by the SEC to appeal her split decision.
The SEC’s claims against Garlinghouse and Larsen regarding the sale of
The SEC asked the court to give the agency three weeks to speak with Ripple in hopes of establishing a financial settlement related to its sale of XRP to institutional investors. The SEC declined to comment.
David Hollerith is a senior reporter for Yahoo Finance, specializing in banking and cryptocurrencies.
Click here for the latest stock news and in-depth analysis, including the events that move stocks.
Read the latest financial and business news from Yahoo Finance