After Grayscale’s victory over the US SEC final week, high monetary establishments and people imagine {that a} spot Bitcoin ETF is inevitable. Within the newest analysis observe, JP Morgan analysts led by Nikolaos Panigirtzoglou acknowledged that the federal securities regulator has no choice however to approve a spot Bitcoin ETF.
The SEC has delayed its determinations on spot BTC ETFs from varied firms, together with established monetary establishments reminiscent of BlackRock, Constancy Investments, and Invesco, till at the very least mid-October.
Of their analysis observe, the analysts emphasised that for the SEC to say no each Grayscale’s bid to rework its GBTC product right into a spot BTC ETF, it could necessitate a reversal of its earlier approvals of futures-based ETFs. They additional famous that such a transfer could be extremely disruptive and doubtlessly embarrassing for the SEC, making it seem unlikely.
Thus, the analysts added that “it appears to be like extra probably that the SEC could be pressured to approve the spot bitcoin ETF functions which might be nonetheless pending from a number of asset managers, together with that from Grayscale,” This postponement “probably factors to approval of a number of spot bitcoin ETF functions directly quite than granting a first-mover benefit to any single applicant, The Block.
SEC’s Current Delay of Spot Bitcoin ETFs Hints A number of Approvals
Final Thursday, August 31, the US SEC delayed its resolution on the entire seven spot Bitcoin ETFs including that it could require ample time to contemplate the proposed rule change. The following overview from the SEC is pending mid-October 2023.
Commenting on this, the JPMorgan analysts added: This postponement “probably factors to approval of a number of spot bitcoin ETF functions directly quite than granting a first-mover benefit to any single applicant”.
“That could possibly be useful for traders as it could permit for extra competitors by way of ETF charges. Grayscale will probably face even larger stress to decrease charges if its belief will get approval to be transformed to the biggest bitcoin spot ETF on the earth,” the analysts added.
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