SEC Will Approve Multiple Spot Bitcoin ETF At Once

After Grayscale’s victory over the US SEC final week, high monetary establishments and people imagine {that a} spot Bitcoin ETF is inevitable. In the newest analysis word, JP Morgan analysts led by Nikolaos Panigirtzoglou said 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 numerous firms, together with established monetary establishments equivalent to BlackRock, Fidelity Investments, and Invesco, till not less than mid-October.

In their analysis word, the analysts emphasised that for the SEC to say no each Grayscale’s bid to remodel its GBTC product right into a spot BTC ETF, it will necessitate a reversal of its previous approvals of futures-based ETFs. They additional famous that such a transfer can be extremely disruptive and doubtlessly embarrassing for the SEC, making it seem unlikely.

Thus, the analysts added that “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 “probably factors to approval of a number of spot bitcoin ETF purposes without delay moderately than granting a first-mover benefit to any single applicant, The Block.

SEC’s Recent Delay of Spot Bitcoin ETFs Hints Multiple Approvals

Last Thursday, August 31, the US SEC delayed its decision on the entire seven spot Bitcoin ETFs including that it will require adequate time to think about the proposed rule change. The subsequent evaluation from the SEC is pending mid-October 2023.

Commenting on this, the JPMorgan analysts 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.

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Bhushan is a FinTech fanatic and holds a very good aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in the direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is repeatedly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and generally discover his culinary abilities.

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