Analytics firm Santiment finds that crypto whales managed to purchase Bitcoin (BTC) in the day leading up to Grayscale’s court victory over the U.S. Securities and Exchange Commission (SEC).
Santiment suggests certain whale and shark addresses “may have known a thing or two” about Grayscale’s legal win before it was announced, noting that wallets holding between 10-10,000 BTC accumulated a collective $388.3 million worth of Bitcoin the day before the news breaking.
Bitcoin jumped from trading around $25,964 before the Grayscale victory to a high of $27,975 in the hours afterward, an increase of more than 7.7%. The top-ranked crypto asset by market cap has since lost a portion of those gains and is trading around $27,275 at time of writing.
Earlier this week, a federal judge ruled that the SEC must reconsider Grayscale’s application to convert the Grayscale Bitcoin Trust into an exchange-traded fund (ETF). Grayscale initially sued the SEC in June 2022, claiming that the regulatory body’s rejection of their ETF application was discriminatory. The judge said the SEC needs to reconsider the company’s application to avoid arbitrariness and inconsistency.
Santiment also notes that old-school BTC hard fork altcoin Bitcoin Cash (BCH) was one of the biggest beneficiaries of the Grayscale news. BCH jumped from trading around $190 on Tuesday morning to a high of $225.29 later that day, an increase of more than 18.5%.
The 18th-ranked crypto asset by market cap also lost some of those gains on Wednesday and is trading at $214.47 at time of writing.
Grayscale offers exposure to BCH through its Grayscale Bitcoin Cash Trust.