SEC Approval for Bitcoin Spot ETFs: A Turning Point in the Horizon?

JPMorgan Says SEC Has No Choice

Following Grayscale’s legal advantage in its lawsuit with the U.S. Securities and Exchange Commission (SEC), JPMorgan asserts that the SEC has little choice but to approve multiple Bitcoin Spot ETF applications.

SEC’s Legal Dilemma

According to The Block, JPMorgan analyst Nikolaos Panigirtzoglou suggests that following Grayscale’s win, the SEC will either have to retroactively revoke approvals for futures-based Bitcoin ETFs or approve spot ETFs. The alternative would be “highly embarrassing and disruptive for investors.”

（Image via Financial Times）

A Simultaneous Approval Looms

The SEC also recently postponed decisions on seven Bitcoin spot ETFs to mid-October. JPMorgan analysts believe that the delay “may mean multiple spot Bitcoin ETF applications will be approved simultaneously, rather than giving any single applicant a first-mover advantage.”

The Competitive Edge: Lower Fees?

This could be beneficial for investors, bringing in more competition in terms of ETF fees. If Grayscale’s trust is approved to convert into the world’s largest Bitcoin Spot ETF, the firm could face significant pressure to reduce fees.

Impact on Crypto Market Dynamics

However, JPMorgan noted that the approval might not drastically change the rules of the crypto market. Bitcoin Spot ETFs already exist in Canada and Europe and have failed to stir significant investor interest.

（Image via CryptoSlate）

Former SEC Chairman Jay Clayton Weighs In

In an interview with CNBC, former SEC Chairman Jay Clayton mentioned that Bitcoin is something both retail and institutional investors want, implying that approval is inevitable. Clayton also suggested giving the SEC another 45 days to make a decision.

Keywords: SEC, U.S. Securities and Exchange Commission, Bitcoin, Spot ETF, JPMorgan, Grayscale, Nikolaos Panigirtzoglou, Futures-based ETF, Approval, Jay Clayton, Investor Impact, Market Dynamics, ETF Fees