On August 29 Bitcoin rose to a two-week high after a judge ruled that the SEC was “arbitrary and capricious” when it declined Grayscale’s spot Bitcoin ETF application

In less than a day, Bitcoin has shed nearly all the gains it made from Grayscale Investment’s court win against the US Securities and Exchange Commission.

On August 29 Bitcoin rose to a two-week high after a judge ruled that the SEC was “arbitrary and capricious” when it declined Grayscale’s spot Bitcoin ETF application.

Nevertheless, the Securities and Exchange Commission’s recent delay to seven pending spot Bitcoin exchange-traded fund applications has sent Bitcoin’s price lower, dropping around 5 per cent during the past 24 hours.

According to Cointelegraph Markets Pro data, Bitcoin’s price is presently near $26,000, dropping sharply from near the $27,300 level it had been experiencing since the Grayscale victory.

BlackRock, WisdomTree, VanEck, Bitwise, Valkyrie and Fidelity along with the joint fund by Invesco and Galaxy were all delayed on August 31 by the Securities and Exchange Commission.

The price drop came even though some were expecting the delays to occur including Bloomberg ETF analysts Eric Balchunas and James Seyffart.

The SEC’s delay allows it another 45 days to approve, reject or again delay the applications.

The next decision deadlines for the ETF applications are between October 16 and October 19, though the Securities and Exchange Commission can also opt to delay the decision up to around mid-March next year when it will be compelled to make a decision.

Nevertheless, Balchunas said on August 30 that the probability of the SEC approving a spot Bitcoin ETF this year was 75 per cent — higher than a previous forecast of 65 per cent.

He pinned the probability hike on Grayscale’s court victory saying the judge’s unanimous denial of the SEC’s arguments means it “will struggle to justify further denials as it faces deadlines.”