Spot Bitcoin exchange-traded fund (ETF) approvals could be on the horizon as JPMorgan predicts they may arrive ‘within months.
Analysts at JPMorgan believe that the Securities and Exchange Commission (SEC) will soon greenlight multiple spot Bitcoin ETF applications. This comes after the SEC chose not to contest a recent court ruling in favor of Grayscale Investments.
“The timing remains unclear but should happen within months, likely before Jan. 10, 2024, the final deadline of Ark Invest and 21Shares applications,” JPMorgan analysts, led by Nikolaos Panigirtzoglou, stated.
The appeal deadline in the Grayscale case lapsed last week, boosting optimism for multiple spot Bitcoin ETF approvals. As a result, Grayscale is expected to face pressure to lower its product fees.
Grayscale Bitcoin Trust, the world’s largest Bitcoin fund with $17.7 billion of assets under management, will likely see its discount to net asset value disappear upon conversion to an ETF, implying a $2 billion benefit to investors.
The JPMorgan analysts also noted that the SEC is unlikely to grant any spot Bitcoin ETF applicant a first-mover advantage, instead opting to approve multiple ETFs simultaneously to encourage competition in terms of ETF fees.
Despite the anticipation, JPMorgan analysts have previously commented that such approval “is unlikely to be a game changer for crypto markets” as spot Bitcoin ETFs in Canada and Europe have failed to generate significant investor interest.
Read Now: Crypto data giant Coin Metrics raises $6.7M in latest funding