FINANCEREGULATION

Coins Rise Together: Grayscale Case Favorable for Spot ETF! Cooling U.S. Job Market

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Coins Rise Together: Grayscale Case Favorable for Spot ETF! Cooling U.S. Job Market

Yesterday, the stock and cryptocurrency markets both rose, with US stocks surging due to a cooling job market. The crypto community saw a widespread increase following a court ruling that presented an opportunity for Grayscale to transition to a spot ETF. Bitcoin surpassed $27,000, while Ethereum rose above $1,700. Cryptocurrency-related stocks such as Coinbase and MicroStrategy also saw significant gains of 14.91% and 10.79%, respectively.

Job Market Cools as U.S. Stocks Surge

U.S. stocks soared yesterday, with the Dow rising over 290 points on Tuesday, up 0.85%. The S&P 500 index climbed 1.45%, and the Nasdaq index surged 1.74%. This year's leading AI stock, NVIDIA, closed at a historic high, reaching a market value of $1.2 trillion for the first time.

On the data front, the Job Openings and Labor Turnover Survey (JOLTS) for July showed a cooling job market, with job openings decreasing by about 338,000 to 8.827 million compared to June, well below market expectations, hitting a new low since January 2021, marking the third consecutive monthly decline. Market consensus is that this data provides further evidence of an "economic cooling" as suggested by the Federal Reserve.

Court Rules SEC to Reconsider Grayscale Case, Cryptocurrency Prices Rally Together

The crypto community is buzzing! Last night, a U.S. federal court ruling was issued, with presiding Judge Neomi Rao stating that Grayscale's proposed transition to a spot Bitcoin ETF is essentially similar to a Bitcoin futures ETF, and the SEC has not clearly explained why it should treat the two products differently.

While the ruling did not direct the SEC to approve Grayscale's GBTC transition to a Bitcoin spot ETF, but to reconsider, the community celebrated nonetheless. Bitcoin and Ethereum saw 24-hour gains of 5.72% and 4.04% respectively, with crypto-related stocks Coinbase and MicroStrategy surging by 14.91% and 10.79%.

Meanwhile, Grayscale's GBTC discount continues to narrow, with analyst James Seyffart from Bloomberg reporting that the discount has decreased from 25% to 17%.