The United States Securities and Exchange Commission (SEC) has additionally stated that the recent postponement by the SEC suggests a higher likelihood of granting approval for multiple simultaneous spot Bitcoin ETFs.
Following Grayscale’s recent victory over the US Securities and Exchange Commission (SEC), prominent financial institutions and individuals increasingly believe that approving a spot Bitcoin exchange-traded fund (ETF) is inevitable. In their most recent research communication, a team of JP Morgan analysts led by Nikolaos Panigirtzoglou assert that the federal securities regulator has no viable alternative but to grant authorization for a spot Bitcoin ETF.
The SECs has postponed its assessments concerning spot Bitcoin ETF proposals submitted by various entities, including well-established financial institutions like BlackRock, Fidelity Investments, and Invesco, with the earliest potential decision date being mid-October.
In their research memorandum, the analysts underscored that for the SECs to reject Grayscale’s proposal to convert its GBTC product into a spot Bitcoin ETF and other similar applications, it would necessitate a reversal of their prior approvals of futures-based ETFs. Furthermore, they pointed out that such a move would be profoundly disruptive and potentially embarrassing for the SEC, rendering it a seemingly improbable course of action.
Consequently, the analysts 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,” This postponement “likely points to approval of multiple spot bitcoin ETF applications at once rather than granting a first-mover advantage to any single applicant, The Block.
Recent SEC Delay of Bitcoin Spot ETFs Suggests Multiple Approvals
The US SEC postponed its decision on all seven spot Bitcoin ETFs on August 31, citing additional time to consider the proposed rule change. The SEC will conduct its subsequent evaluation in the middle of October 2023.
Analysts at JPMorgan added: This postponement “likely points to approval of multiple spot bitcoin ETF applications at once rather than granting a first-mover advantage to any single applicant”.
“That could be beneficial for investors as it would allow for more competition in terms of ETF fees. Grayscale will likely face even bigger pressure to lower fees if its trust gets approval to be converted to the largest bitcoin spot ETF in the world,” the analysts added.
