JPMorgan Predicts Approval of Spot Bitcoin ETFs by the SEC
JP Morgan analysts, led by Nikolaos Panigirtzoglou, believe that the US Securities and Exchange Commission (SEC) will likely be compelled to approve several spot Bitcoin Exchange-Traded Funds (ETFs). This forecast comes after Grayscale’s recent legal victory against the SEC.
Key Points:
– A federal court ordered the SEC to reconsider its rejection of Grayscale’s proposal to convert its BTC Trust into a spot ETF. The court criticized the SEC for its inconsistent treatment of futures-based ETFs and spot-based Bitcoin ETFs, calling its rejection baseless.
– Panigirtzoglou suggests that for the SEC to maintain its denial of Grayscale’s proposal, it would have to withdraw its previous approval of futures-based Bitcoin ETFs, which would be disruptive and embarrassing for the SEC. Therefore, it is more likely that the SEC will approve pending spot Bitcoin ETF applications.
– The SEC’s decision to delay spot ETF approvals until mid-October has fueled speculation. JP Morgan analysts believe this delay indicates the SEC’s intention to potentially approve multiple spot Bitcoin ETF applications simultaneously, fostering competition and reducing fees.
Hot Take:
While the approval of spot Bitcoin ETFs in the US is a significant milestone, JP Morgan analysts caution that their success may not be guaranteed based on the lackluster investor response to similar ETFs in regions like Canada and Europe. However, Panigirtzoglou also predicts that the current market sell-off may be ending soon, with a rebound expected in the second half of the year. BTC is currently trading at $25,974.
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