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Stacks, Bitcoin Cash, Stellar, Litecoin outlook after the new BTC news

By:
on Aug 29, 2023
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  • Grayscale won a long-running case against the SEC.
  • The outcome allows the company to convert GBTC into an ETF.
  • Most altcoins like Stacks, Bitcoin Cash, Litecoin, and Stellar jumped.

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Bitcoin price jumped by more than 5% on Tuesday after Grayscale won a major lawsuit against the Securities and Exchange Commission (SEC). The coin rose by more than 5%, triggering a major rebound in the altcoins market. Stacks and Bitcoin Cash prices rose by over 10% while Stellar Lumens (XLM), Polygon, and Avalanche jumped by more than 8%.

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The biggest crypto news of the day came from the United States, where a court ruled in favour of Grayscale Bitcoin Trust (GBTC). This was an important event that was closely watched by both investors and traders. 

The lawsuit allowed GBPTC to convert its fund into an exchange-traded fund (ETF). By becoming an ETF, Grayscale hopes to narrow the discount that has always existed in its fund.

Most importantly, the suit means that the SEC will be forced to accept the other spot Bitcoin ETF. The SEC is expected to deliver its ruling on these funds by end of the week. Some of the companies that have applied for a Bitcoin ETF are Blackrock, Invesco, BitWise, and VanEck. In a statement, Grayscale said:

“This is a monumental step forward for American investors, the Bitcoin ecosystem, and all those who have been advocating for Bitcoin exposure through the added protections of the ETF wrapper.”

So, what will be the impact of the latest Bitcoin news on crypto prices? Some analysts like Tom Lee believes that the announcement will trigger a Bitcoin bull run to $150,000. If this happens, altcoins like Stacks, Bitcoin Cash, and Stellar lumens will follow suit. 

I take the contrary opinion in that a spot Bitcoin ETF will not have a major impact on prices in the long term. For one, institutional investors already have access to Bitcoin through the futures ETF known as BITO. BITO always moves in the same direction with Bitcoin. Therefore, as we saw after the SEC vs Ripple case, there is a likelihood that the coins will resume the bearish trend in the coming weeks.

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