JPMorgan’s Prediction on When Bitcoin Spot ETF Will Be Approved

Analysts at JPMorgan said that they expect the SEC to grant approval for Bitcoin Spot ETFs.

Several spot Bitcoin ETF applications have been submitted to the US Securities and Exchange Commission (SEC), and analysts at JPMorgan have said that they anticipate its approval in the near future.

According to the research team headed by Nikolaos Panigirtzoglou, approvals for Ark Invest and 21Shares might come “within months,” or at the latest, before the application deadline of January 10, 2024.

Grayscale Investments’ confidence was bolstered by the SEC’s decision not to appeal a favorable court ruling. After Grayscale won its lawsuit in court the prior month, the SEC let the company’s appeal period for that case expire last week.

Analysts have highlighted that this news has “increased optimism for multiple spot bitcoin ETF approvals.” They further claimed that the court ruling will compel the SEC to okay spot BTC ETFs.

With potential approval of a spot bitcoin ETF, Grayscale Bitcoin Trust, the biggest Bitcoin fund with AUM of $17.7 billion, is anticipated to face pressure to decrease product costs.

Furthermore, experts believe that the share redemption/creation arbitrage mechanism inherent in the ETF structure will eventually cause the GBTC discount to net asset value to vanish.

JPMorgan estimates that investors would reap a $2 billion windfall if this discount were eliminated. Experts have stressed again that the SEC will likely approve many spot BTC ETFs simultaneously and will not give any applicant a first-mover advantage.

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