On Tuesday, Coinbase shares increased in value due to a court decision related to a bitcoin spot ETF, which could give advantages to the digital currency platform. Later on the same day, Coinbase is to submit its last reply to the Securities and Exchange Commission's response to the exchange's request to reject. Additionally, Grayscale Bitcoin Trust and MicroStrategy, another crypto-related organization, saw increases of over 10% in Tuesday morning trading.Shares of Coinbase, a cryptocurrency exchange, rose 6% Tuesday, buoyed by speculation over potential approval of a bitcoin spot exchange-traded fund (ETF). Additionally, shares of Grayscale's Bitcoin Trust also surged by nearly 5%, after a judge's order for the SEC to review the company's Bitcoin ETF proposal officially took effect Monday.Coinbase's stock often follows the performance of the broader cryptocurrency markets and the company is oftentimes chosen as a custodian for prospective ETFs, including BlackRock's proposed Bitcoin ETF.The SEC has been criticized for its regulation-by-enforcement approach to cryptocurrency exchanges, with critics arguing the regulator is unfairly targeting them in the FTX collapse wake, while advocates argue cryptos are securities and do require additional regulation.The tussle between the two sides has had an impact on shares of crypto-related companies, including Coinbase and MicroStrategy. Coinbase's stock has risen 119% year-to-date, however, it is still down from its pre-crypto-winter levels. Similarly, MicroStrategy shares rose 12% during Tuesday morning trading, yet remain below their 2022 level.Coinbase is to make a final filing in its motion to dismiss the SEC's claims in federal court at the end of Tuesday. The company's earlier August arguments included that the SEC's lawsuit went beyond its authority and that the assets in question did not constitute securities under the Howey Test, a legal doctrine set by the Supreme Court in 1946 to establish the SEC's jurisdiction. The SEC countered this, saying Coinbase did intermediate transactions involving investment contracts.
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