JPMorgan Forecasts Approval of Multiple Spot Bitcoin ETFs
In a recent note, JPMorgan analyst Nikolaos Panigirtzoglou highlighted the potential approval of several spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). This follows a court ruling in favor of Grayscale Investments, which sought to convert its bitcoin trust into a spot bitcoin ETF.
Panigirtzoglou explained that the court ruling has instilled optimism in the crypto markets, particularly because it challenges the SEC’s intense crackdown on crypto companies. The ruling deemed the SEC’s denial of Grayscale’s proposal “arbitrary and capricious” due to its failure to justify its different treatment of futures-based bitcoin ETFs.
According to Panigirtzoglou, this ruling signifies that the SEC would have to retroactively withdraw its previous approval of futures-based bitcoin ETFs to defend its denial of Grayscale’s proposal. However, the analyst believes this is unlikely and suggests that the SEC may be compelled to approve pending spot bitcoin ETF applications, including Grayscale’s, in order to avoid disruption and embarrassment.
Furthermore, Panigirtzoglou anticipates that the SEC’s decision on spot bitcoin ETF applications, which has been postponed to October, may result in the simultaneous approval of multiple applications. This would promote competition among asset managers and potentially lower ETF fees for investors.
Hot Take
The court ruling in favor of Grayscale and the possibility of multiple spot bitcoin ETF approvals indicate a shifting landscape for crypto regulation. As the SEC faces legal challenges, it may become more accommodating towards crypto companies. If spot bitcoin ETFs are approved, it could open the door to greater investment opportunities and increased competition in the market. Investors should stay informed and prepared to seize these new possibilities in the evolving crypto space.
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