SEC vs. Grayscale Verdict Sparks Accusations of Bitcoin Insider Trading by Crypto Whales and Sharks

The post SEC vs. Grayscale Verdict Sparks Accusations of Bitcoin Insider Trading by Crypto Whales and Sharks appeared first on Coinpedia Fintech News

The United States Securities and Exchange Commission (SEC) has over the years failed to approve a spot Bitcoin ETF due to allegations of price manipulation and lack of proper measures to combat money laundering.

However, the narrative came to an end after the United States Court of Appeals for the D.C. Circuit ruled that the SEC failed to adequately explain why it approved the listing of two Bitcoin futures ETPs but rejected the Grayscale’s proposed spot Bitcoin ETF. 

As a result, hopes for a spot Bitcoin ETF in the United States significantly increased, which could be the floodgate for institutional money to the crypto market.

Crypto Whales Accused of Bitcoin Insider Trading

Bitcoin volatility significantly spiked after the United States Court of Appeals paved the way for an ETF approval from the SEC. According to the latest crypto market data, Bitcoin price jumped over 6 percent to trade around $27.45k during the early London market on Wednesday. Interestingly, Bitcoin’s average daily traded volume spiked over 186 percent to about $31 billion, according to aggregate data provided through Binance-backed Coinmarketcap.

Research conducted by the on-chain intelligence platform Santiment concluded that Bitcoin whales and sharks could have known the outcome of the SEC vs. Grayscale ruling.

Moreover, Santiment noted that as the mainstream crowd reacted to the Grayscale victory against the SEC, wallets holding between 10 and 10k Bitcoins added about 14,596 coins just before the ruling was delivered. As a result, the Bitcoin whales and sharks were rewarded with a quick 6 percent gain.