HomeCoinsBitcoinA number of Bitcoin ETFs incoming: JP Morgan analyst

A number of Bitcoin ETFs incoming: JP Morgan analyst

JP Morgan analysts, led by Nikolaos Panigirtzoglou, counsel that Grayscale’s court docket victory over america Securities and Trade Fee (SEC) units the stage for a flurry of Bitcoin (BTC) exchange-traded funds (ETFs).

In a latest observe, JP Morgan analysts proposed that the SEC would possibly have to rethink its approval of a futures-based Bitcoin ETF to forestall the conversion of Grayscale Bitcoin Belief (GBTC) right into a spot ETF. Nonetheless, the analysts deem this situation unlikely, as it might be extremely disruptive and doubtlessly embarrassing for the SEC.

“[The delays applied to Bitcoin ETF decisions] likely points to approval of multiple spot bitcoin ETF applications at once rather than granting a first-mover advantage to any single applicant.”

JP Morgan observe

The analysts additionally famous that even when Bitcoin spot ETFs had been accepted, they may not result in substantial value will increase for Bitcoin or the general crypto market. They highlighted that related spot Bitcoin ETFs have been obtainable in Canada and Europe for a while however haven’t garnered substantial investor consideration.

Grayscale, the supervisor of the world’s largest bitcoin fund, has been engaged in a authorized battle with the SEC over its request to transform its funding automobile into an ETF.

The SEC initially rejected Grayscale’s proposal, citing considerations about investor safety towards fraudulent and manipulative practices.

In response to the SEC’s denial, Grayscale criticized the company’s stance as “illogical” and “discriminatory.” A number of affiliations, together with The Blockchain Society, The Chamber of Digital Commerce, the Chamber of Progress, and Coin Middle, filed an amicus curiae to assist Grayscale and criticize the SEC’s choice.

Nonetheless, Grayscale lately secured a big victory in its authorized battle towards the SEC. A panel of three federal judges in Washington overturned the SEC’s choice, permitting Grayscale to proceed with the initiation of a Bitcoin spot ETF. This choice had a optimistic affect on the crypto market, pumping BTC and crypto costs.

The US Court docket of Appeals for the District of Columbia Circuit dominated in favor of Grayscale, deeming the SEC’s prior rejection of the corporate’s Bitcoin spot ETF proposal as “arbitrary and capricious.”

The court docket acknowledged that Grayscale had offered substantial proof to assist the similarity of their providing to current Bitcoin futures ETFs, which had already gained SEC approval.

Importantly, the court docket underscored the parallels, such because the surveillance-sharing agreements each merchandise have with the Chicago Mercantile Trade (CME).

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