HomeCoinsBitcoinJP Morgan Predicts SEC Will Be Compelled To Approve Bitcoin ETF

JP Morgan Predicts SEC Will Be Compelled To Approve Bitcoin ETF

JP Morgan analysts, spearheaded by Nikolaos Panigirtzoglou, have forecasted that the US Securities and Trade Fee (SEC) will probably be compelled to greenlight a number of spot Bitcoin Trade-Traded Funds (ETFs). This prediction comes on the heels of Grayscale’s important authorized triumph towards the SEC.

Final week, a federal courtroom mandated the SEC to revisit its prior rejection of Grayscale’s bid to transform its BTC Belief (GBTC) into an spot ETF. The courtroom’s determination was rooted within the SEC’s “arbitrary and capricious” stance, the place it did not elucidate its differential remedy of futures-based ETFs and spot-based Bitcoin ETFs. The courtroom emphasised that the SEC’s rejection lacked a stable basis, particularly given the shut correlation between the spot market and the CME futures market.

JP Morgan Predicts Spot Bitcoin ETF Approval

Nikolaos Panigirtzoglou remarked in a notice, “The SEC would have to retroactively withdraw its previous approval of futures-based Bitcoin ETFs to defend its denial of Grayscale’s proposal. Such a move would be very disruptive and embarrassing for the SEC.” He additional added, “Given the circumstances, it appears more probable that the SEC will approve the pending spot Bitcoin ETF applications from several asset managers, including Grayscale.”

The SEC’s current announcement to delay choices on spot ETFs from monetary behemoths like BlackRock, Constancy, and Invesco till mid-October has additional fueled speculations. JP Morgan analysts interpret this postponement as a strategic transfer by the SEC to doubtlessly approve a number of spot Bitcoin ETF purposes concurrently.

This strategy wouldn’t solely remove any first-mover benefit but in addition foster competitors, which may result in a discount in ETF charges. Panigirtzoglou said, “it looks more likely that the SEC would be forced to approve the spot Bitcoin ETF applications that are still pending from several asset managers, including that from Grayscale.”

Nonetheless, it’s not all sunshine and rainbows. Whereas the potential approval of spot ETFs within the US is a major milestone, JP Morgan analysts have additionally sounded a notice of warning. They highlighted that spot BTC spot ETFs have been operational in areas like Canada and Europe for some time however haven’t witnessed substantial investor traction. The analysts additional famous, “Outflows from gold ETFs over the past year haven’t significantly benefited Bitcoin funds, including futures ETFs.”

A couple of days in the past, Panigirtzoglou additionally predicted that the present sell-off could also be nearing its finish, as open curiosity in CME BTC futures contracts has declined. He foresees the crypto market bottoming out within the coming weeks and a rebound within the second half of the yr.

At press time, BTC traded at $25,974.

Bitcoin price
BTC hovers under $26,000, 4-hour chart | Supply: BTCUSD on TradingView.com

Featured picture from Pymnts.com, chart from TradingView.com

Supply: https://bitcoinist.com/jp-morgan-predicts-sec-forced-approve-bitcoin-etf/

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