Bitcoin ETFs have been the topic of discussion for quite some time. This has been greatly elevated with the recent decision in the prolonged Grayscale and SEC lawsuit. With the federal court issuing a ruling to the SEC to review its Grayscale application of a Bitcoin ETF, speculation has increased.
In one of the most recent reports, JPMorgan stated that the SEC will likely have to approve multiple Bitcoin spot ETFs, leaving them with no major choice.
Grayscale win puts SEC’s stance on Bitcoin ETFs in jeopardy
In JPMorgan’s view, the implications go beyond just Grayscale’s trust. They believe the SEC would face major disruptions if it tried to deny other spot bitcoin ETF applications after greenlighting Grayscale.
As analysts led by Nikolaos Panigirtzoglou explained, rejecting other spot ETFs now would force the SEC to retroactively reverse its previous approvals of futures-based bitcoin funds. Since this appears highly unlikely, the path forward points to approvals.
After years of rejection, the SEC is running out of reasons to deny spot bitcoin ETFs while futures products operate without issues. With Grayscale breaking through, the floodgates may soon open for investors to gain direct exposure to bitcoin through their brokerage accounts.
While the SEC has yet to shift from its hesitant stance, the Grayscale decision undeniably turns up the heat.