Bitcoin Spot ETF Approval Seems Inevitable: Insights from JPMorgan and Former SEC Chairman

The cryptocurrency market is abuzz with the latest developments surrounding the approval of Bitcoin Spot ETFs. Here’s what industry leaders have to say.

JPMorgan: SEC Can’t Afford to Reverse Futures ETF Approval

Following GrayScale’s legal win against the SEC concerning the transformation of its Bitcoin Trust Fund GBTC into a Bitcoin Spot ETF, Wall Street giant JPMorgan states that the SEC might have no choice but to approve multiple Bitcoin Spot ETF applications.

In a report led by analyst Nikolaos Panigirtzoglou, JPMorgan mentioned that the court’s ruling essentially conveys that there’s no legitimate reason for the SEC to deny Spot ETFs under the pretext of “market manipulation concerns,” especially when Futures ETFs pose similar risks.

The Risk of Retrospective Reversal

If the SEC maintains a rigid stance, it may have to retrospectively revoke its previous approval for Bitcoin Futures ETFs. Such a move would be “highly disruptive and embarrassing for investors,” JPMorgan says.

（Image via BlockTempo）

Former SEC Chairman Jay Clayton: Approval is Inevitable

On the other side, former SEC Chairman Jay Clayton expressed optimism about the approval of Bitcoin Spot ETFs during a CNBC interview on August 31. Clayton stated that with major institutions showing confidence in the Bitcoin spot market, the retail access to Bitcoin seems appropriate now.

Ongoing Uncertainties

Although Clayton noted that the court has given the SEC extra time for reevaluation, he is overall optimistic: “Approval is inevitable, and the bifurcation between futures and spot products can’t last forever.”

What Changes Could Spot ETF Bring?

Tommy Shaughnessy, co-founder of Delphi Digital, speculates that the ETF would change the cryptocurrency’s “acceptance halo.” Once everyone can purchase it, there will be a broad acceptance, enabling more people to work in crypto companies, advocate for new regulations, and hold tokens.

U.S. investor Santiago R. Santos also expressed optimism, suggesting that cryptocurrency ETFs would follow a development trajectory similar to gold ETFs, first gaining approval in Europe and then entering the U.S.

（Image via Blockworks）

Conclusion

From Wall Street giants to former SEC Chairmen, the consensus seems to be building around the inevitability of Bitcoin Spot ETF approvals. However, only time will tell what impact this development will have on investors and the broader cryptocurrency market.

Keywords: Bitcoin Spot ETF, JPMorgan, SEC, GrayScale, Approval, Market Manipulation, Futures ETF, Jay Clayton, Investment, Regulatory Changes