Spot Bitcoin ETF Approval Inevitable After Grayscale’s Victory, Says JP Morgan
JP Morgan analysts believe that the US SEC has no choice but to approve a spot Bitcoin ETF after Grayscale’s recent victory over the regulator. The SEC has delayed its determinations on spot BTC ETFs until at least mid-October, including applications from BlackRock, Fidelity Investments, and Invesco. The analysts argue that for the SEC to decline Grayscale’s bid, it would require a reversal of its previous approvals of futures-based ETFs, which would be highly disruptive. They suggest that the SEC will likely approve multiple spot Bitcoin ETF applications at once instead of granting a first-mover advantage to any single applicant. This would lead to more competition and potentially lower ETF fees for investors.
Key Points:
- Grayscale’s victory over the US SEC makes approval of a spot Bitcoin ETF more likely.
- The SEC has delayed its determinations on spot BTC ETFs until at least mid-October.
- Declining Grayscale’s bid would require a reversal of previous approvals, which is unlikely.
- JP Morgan analysts believe the SEC will approve multiple spot Bitcoin ETF applications simultaneously.
- This would lead to more competition and potentially lower ETF fees.
Hot Take:
The delay in the SEC’s decision on spot Bitcoin ETFs suggests that approval for multiple applications is on the horizon. This is good news for investors as it would foster competition and potentially result in lower fees. Grayscale, in particular, may face pressure to lower fees if its trust is converted into the largest Bitcoin spot ETF in the world. Overall, the outlook for a spot Bitcoin ETF approval looks positive.
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