Bitcoin rallied almost 6% on Tuesday after a federal court paved way for Grayscale Investment to launch the first bitcoin exchange-traded fund in the U.S.
The cryptocurrency BTCUSD, +5.52% climbed to as high as $27,790 at last check, the highest level since Aug. 17, according to CoinDesk data. Bitcoin has risen over 57% so far this year, but is still down almost 60% from its all-time high in 2021. An appeals panel in Washington on Tuesday overturned a decision by the US Securities and Exchange Commission to bar the ETF. The agency has approved several ETFs based on bitcoin futures, but has not greenlighted one that invests in directly in bitcoin, citing risks of market manipulation.In June, led by BlackRock BLK, +0.71%, several asset managers such as Fidelity, WisdomTree, VanEck, Invesco IVZ, +1.98%, Ark Invest and 21 Shares filed or refiled their applications for bitcoin ETFs.