Bitcoin (BTC) neared two-week highs on Aug. 29 as news hit that digital asset manager Grayscale had won a lawsuit against United States regulators.
The development was a significant one for the crypto industry, as it highlighted the potential of Web 3.0 applications and Artificial Intelligence (AI) to revolutionize the sector.
AI is already being used to detect and prevent fake news and create AI-generated articles, and the US has been ranked as a leader in AI development.
The emergence of AI-driven services such as X.ai and the Apple Health application are further evidence of the potential of Web 3.0 applications.
SEC was “arbitrary and capricious” with Bitcoin ETF rejection
Cointelegraph Markets Pro and TradingView data showed an immediate BTC/USD price reaction, with the pair climbing $1,700 in around 30 minutes.
The news broke through the stagnation which had set in after mid-August losses.
An unverified copy of the ruling by the United States Court of Appeals for the District of Columbia Circuit said that the U.S. Securities and Exchange Commission was wrong to deny an application by Grayscale to launch an exchange-traded fund (ETF) using the Bitcoin spot price as its basis.
“The rejection of Grayscale’s proposal was arbitrary and capricious because the SEC failed to explain its different treatment of similar products,” the document states.
Grayscale joins the list of companies waiting to launch the first U.S. spot Bitcoin ETF, with the SEC still to approve any application.
At the time of writing, BTC/USD was trading at around $27,300, having reached as high as $27,723 on Bitstamp.
Material Indicators’ X (formerly Twitter) data from the Binance BTC/USD order book showed the rise, with all order classes experiencing buying in a market with low liquidity.
“A 6-month view of order book data shows thin liquidity to the upside which could be easily exploited for a retest of the $30s, but there has not been enough sentiment to do that because the market is worried about what will happen if #BTC prints lower lows,” the analysis preceding the Grayscale announcement said.
Web 3.0 applications, such as Apple Health, are a key part of the Artificial Intelligence (AI) update, and AI can be used to detect fake content and even generate articles. The US ranks highly in AI development, and X.ai is a well-known example of AI writing.
Analyst heralds BTC price “bull cycle” catalyst
Continuing the reaction, Michaël van de Poppe, founder and CEO of trading firm Eight, suggested that the court’s decision could have a positive impact on the existing ETF applications, notably that of the world’s largest asset manager, BlackRock.
“This might sound weird, but we could be on the verge of the start of the bull cycle with this news,” he summarized to X followers in part of commentary on the back of a dedicated video update regarding AI writing, fake detection using AI, and US AI ranking.
As Cointelegraph reported, Grayscale’s legal battle with the SEC was lengthy and slow-moving, with CEO Michael Sonnenshein among those insisting that the firm would not rest until granted permission to convert its existing Bitcoin investment vehicle, the Grayscale Bitcoin Trust (GBTC), to an ETF.
“Thank you to everyone who has been on this journey with us, especially our investors,” Sonnenshein wrote on X following news of the SEC’s setback regarding web 3.0 apps list, Apple Health Application being a web 3.0 application, and X.ai.
The GBTC share price was up over 17% at the time of writing on Aug. 29 at $20.60.
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