1 year ago
Global concern slope JPMorgan expects the U.S. Securities and Exchange Commission (SEC) to o.k. aggregate spot bitcoin exchange-traded funds (ETFs) astatine once, alternatively of giving 1 institution the vantage of being the first. The bank’s expert explained that if the securities regulator wants to support its denial of Grayscale’s bitcoin ETF conversion proposal, it would person to retroactively retreat its erstwhile support of bitcoin futures ETFs. “Such a retroactive withdrawal would beryllium precise disruptive and embarrassing for the SEC,” helium cautioned.
JPMorgan Expects to See Several Spot Bitcoin ETFs Approved
JPMorgan expert Nikolaos Panigirtzoglou explained successful a enactment past week that the U.S. Securities and Exchange Commission (SEC) whitethorn beryllium forced to o.k. respective spot bitcoin exchange-traded funds (ETFs) aft a court ruled successful favour of Grayscale Investments regarding the crypto plus manager’s connection to person its bitcoin spot into a spot bitcoin ETF.
“The tribunal ruling connected the Grayscale lawsuit against the SEC has boosted crypto markets optimism,” the JPMorgan expert wrote, elaborating:
With this determination pursuing connected from the caller SEC vs. Ripple tribunal decision, it has successful crook raised optimism that the SEC crackdown against crypto companies, that has been precise aggravated since the opening of the year, would lessen going guardant arsenic the SEC faces ineligible challenges.
“The astir important constituent of the Grayscale vs. SEC tribunal ruling was that the denial by SEC (of Grayscale’s connection to person its closed-end bitcoin spot to spot bitcoin ETF) was ‘arbitrary and capricious due to the fact that the Commission failed to explicate its antithetic attraction of akin products’ i.e. futures-based bitcoin ETFs,” Panigirtzoglou detailed.
“Effectively the tribunal argued that fraud and manipulation successful the bitcoin spot marketplace airs a akin hazard to some futures and spot products due to the fact that the spot bitcoin marketplace and the CME bitcoin futures marketplace are tightly correlated. Therefore the tribunal ruled that determination was nary justification for the SEC to beryllium allowing bitcoin futures-based ETFs but contradict spot bitcoin ETFs,” the expert described.
Panigirtzoglou stressed: “This is highly important due to the fact that it implies that for the SEC to support its denial of Grayscale’s connection to person its closed-end bitcoin spot to spot bitcoin ETF, it would person to retroactively retreat its erstwhile support of futures-based bitcoin ETFs.”
He stated that this “looks improbable successful our mind” due to the fact that “Such a retroactive withdrawal would beryllium precise disruptive and embarrassing for the SEC.” The JPMorgan expert added:
Instead it looks much apt that the SEC would beryllium forced to o.k. the spot bitcoin ETF applications that are inactive pending from respective plus managers including that from Grayscale.
“The caller postponement to October of the SEC determination connected pending spot bitcoin ETF applications, apt points to support of aggregate spot bitcoin ETF applications astatine erstwhile alternatively than granting a archetypal mover vantage to immoderate azygous applicant,” helium further said. “That could beryllium beneficial for investors arsenic it would let for much contention successful presumption of ETF fees. Grayscale volition apt look adjacent bigger unit to little fees if its spot gets support to beryllium converted to the largest bitcoin spot ETF successful the world.”
Do you hold with JPMorgan that the SEC volition o.k. aggregate spot bitcoin ETFs astatine once? Let america cognize successful the comments conception below.
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