Spot Bitcoin ETF Legal Repercussions Await The SEC?
JPMorgan analysts have suggested that if the US Securities and Exchange Commission (SEC) rejects spot Bitcoin Exchange Traded Fund (ETF) applications, it could lead to legal action against the SEC. This analysis highlights the potential consequences of the SEC’s decisions on crypto ETFs for both institutional and retail investors.
“We believe that a new legal battle on the issue of spot bitcoin ETF approval is not something that the SEC would be willing to face again.” – JPMorgan analyst
JPMorgan previously predicted that multiple spot Bitcoin ETFs would be approved in the coming months. The banking giant also acknowledged the efforts of asset managers in addressing concerns raised by the SEC, such as market manipulation and commingling of customer funds.
Bitcoin’s Institutional Climb
JPMorgan’s analysis indicates that Bitcoin’s recent surge is not solely driven by individual enthusiasts but is fueled by institutional demand. The analyst points to increased activity in CME Bitcoin futures, which are predominantly used by institutional investors, as evidence of this shift. In contrast, CME Ethereum futures show relatively little activity.
The analyst also noted significant inflows into larger Bitcoin wallets, further highlighting institutional demand for the cryptocurrency.
Hot Take: Bitcoin Retraces But Remains Strong
Despite a 3.2% drop in the past day, Bitcoin continues to perform well overall. It has seen a 20% increase over the past week and a nearly 30% rise in the past two weeks. At the time of writing, Bitcoin is trading above $34,000.
Source: The Block
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