JPMorgan Predicts Likely Approval of Spot Bitcoin ETFs


September 4, 2023


Gabriel Negrín

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JPMorgan Chase anticipates the US Securities and Exchange Commission (SEC) approving spot Bitcoin ETF applications after Grayscale Investments' favorable court verdict regarding its ETF conversion. 

The court stated that the SEC may have insufficient reasons to accept futures-based Bitcoin ETFs while rejecting spot-based ones. 

Analysts led by Nikolaos Panigirtzoglou argue that rejecting Grayscale's request would require the SEC to revise past futures-based Bitcoin ETF approvals, a significant and unusual occurrence.

Maintaining regulatory uniformity may lead the SEC to accept Grayscale's proposal and other spot-based Bitcoin ETFs. Despite spot Bitcoin ETFs providing long-term investment windows, JPMorgan's analysis suggested that investor interest in future-based and physically-backed Bitcoin funds has dropped since Q2 2021, underplaying potential increases in mainstream investment demand.