Grayscale Investments' controversial Bitcoin trust experienced a $2 billion increase in value following the failure of attempts to hold a Bitcoin exchange-rated fund.
The rise in value far outpaced Bitcoin's gains, with the trust posting approximately a 21% increase, compared to Bitcoin's 7% gains.
The cryptocurrency market celebrated this news, with Grayscale Investments' Bitcoin trust trading beyond $27,700.
The federal court ruling in favor of Grayscale paved the way for the first Bitcoin ETF to be launched in the United States.
The trust's discount to its Bitcoin holdings shrank to less than 17%, a significant decrease from over 45% earlier in the year.
A spot Bitcoin ETF would provide investors exposure to the digital asset without needing to directly buy Bitcoin or manage separate crypto wallets.
The court ruling marks a major milestone for the cryptocurrency sector, potentially impacting other issuers with pending spot Bitcoin ETF applications.