On Aug. 29, a federal court issued a ruling that increases the likelihood that the SEC will grant approval for various applications for bitcoin spot exchange-traded funds (ETFs). 

According to CoinDesk, in a report that was released by the brokerage firm Bernstein on Tuesday, it was stated that Grayscale, the manager of the Grayscale Bitcoin Trust (GBTC), had won a major victory for the cryptocurrency sector against the United States Securities and Exchange Commission (SEC). This victory comes on the heels of a favorable ruling that was issued in favor of Ripple the previous month. Grayscale's request to have the GBTC converted into an exchange-traded fund (ETF) was denied by the SEC on Tuesday, but the commission has been instructed to review its decision to deny the request.

According to statements made by analysts led by Gautam Chhugani, the ruling "clears the path for a spot bitcoin ETF." The likelihood that the SEC will grant approval to all outstanding applications at the same time has also improved as a result of this finding. ETFs are a sort of investment vehicle that, similar to that of the stock market, are intended to track the value of a particular asset. 

Even while the GBTC product cannot be quickly transformed into an ETF, the court's verdict "offers a fair foundation for Grayscale to be treated on par with other applicants seeking a Bitcoin ETF," as the report from Bernstein puts it. This paves the way for Grayscale to be treated on par with other applicants seeking a Bitcoin ETF.

Bernstein predicts that within the next two to three years, bitcoin ETF could account for approximately 10% of bitcoin's market cap.