The SEC Likely to Approve Spot Bitcoin ETFs Following Grayscale’s Victory, Says JPMorgan
In a recent note, JPMorgan analysts led by Nikolaos Panigirtzoglou stated that the United States Securities and Exchange Commission (SEC) will probably have to approve multiple spot bitcoin exchange-traded fund (ETF) applications due to Grayscale’s win against the SEC. The court ruled that the SEC’s rejection of Grayscale’s proposal to convert the Grayscale Bitcoin Trust (GBTC) into an ETF was arbitrary and capricious. Here are the key points:
– Grayscale’s victory puts pressure on the SEC to retroactively withdraw its approval of futures-based bitcoin ETFs.
– The SEC is unlikely to take such a disruptive action, and therefore, it is more likely that they will be forced to approve pending spot bitcoin ETF applications.
– The SEC announced a delay in decisions on spot bitcoin ETFs, indicating a potential approval of multiple applications at once.
– The approval of spot bitcoin ETFs could lead to more competition and lower fees for investors.
– While spot bitcoin ETFs may not be a game changer for the crypto market, they offer marginal advantages over futures bitcoin ETFs.
In conclusion, JPMorgan believes that Grayscale’s win brings us closer to the approval of spot bitcoin ETFs, which could have a positive impact on the market. However, the analysts also note that the overall impact may be limited, as previous spot bitcoin ETFs in Canada and Europe have not gained significant investor interest.
By
By
By
By
By
By