JPMorgan analysts believe the U.S. Securities and Exchange Commission (SEC) has no choice but to approve multiple spot Bitcoin exchange-traded fund (ETF) applications after the court ruled in favor of Grayscale's attempt to convert its Bitcoin trust into an ETF.
According to a note published Friday, analysts said the SEC would have to revoke its previous approval of futures-based Bitcoin ETFs to reject Grayscale's proposal, but such a move would be “very disruptive and embarrassing for the SEC” and unlikely to happen. told.
Therefore, analysts expect the SEC to approve still-pending spot BTC ETF applications from various asset managers, including Grayscale.
Analysts also said the SEC's decision to delay decisions on spot bitcoin ETFs until at least mid-October indicates that the regulator will approve multiple applications simultaneously rather than giving a single applicant a first-mover advantage. This could benefit investors by allowing more competition in terms of ETF fees, analysts added.
However, analysts reiterated the view that spot bitcoin ETFs are unlikely to be a turning point for the cryptocurrency market as they have failed to attract significant investor interest in Canada and Europe, where they have existed for some time. Analysts also said that outflows from gold ETFs over the past year have not benefited Bitcoin funds overall, and that the advantage of spot BTC ETFs over futures BTC ETFs is “fairly marginal.”
*This is not investment advice.