JPMorgan Expects SEC Approval of Multiple Spot Bitcoin ETF’s Within Months

Vignesh Karunanidhi
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Source: The Financial Technology Expert

According to analysts at JPMorgan, the SEC will likely approve several spot bitcoin exchange-traded funds (ETFs) in the coming months.

In a report on Wednesday, JPMorgan stated spot bitcoin ETF approvals should materialize before January 10, 2024, which is the deadline for certain filings like ARK Invest’s application.

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JPMorgan analysts led by Nikolaos Panigirtzoglou said, “This is the earliest among the various final deadlines faced by SEC across spot bitcoin ETF applications.”

JPMorgan cites increased optimism for spot Bitcoin ETF approvals

The bank cited growing optimism around multiple approvals following the SEC’s inaction on appealing Grayscale’s win. The decision required the agency to reexamine a spot bitcoin ETF. JPMorgan believes approvals are now more likely.

Per the analysts, Grayscale’s popular bitcoin fund, GBTC, would face fee pressure. On the other hand, it may also see its trading discount versus net asset value disappear as an ETF. 

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JPMorgan expects the SEC to approve ETFs from various applicants simultaneously to encourage fee competition.

While the precise timing is still uncertain, the tone from major financial institutions indicates confidence is rising on long-awaited spot bitcoin ETF approvals materializing in 2023 after years of setbacks.