JPMorgan analysts believe that the United States Securities and Exchange Commission (SEC) will be compelled to approve multiple spot bitcoin exchange-traded fund (ETF) applications after Grayscale’s legal victory against the SEC. This implies that the SEC may have to retract its previous approval of futures-based bitcoin ETFs to justify denying Grayscale’s proposal to convert its bitcoin trust into an ETF. However, such a move would be disruptive and embarrassing for the SEC, making it more likely that the pending spot bitcoin ETF applications, including Grayscale’s, will be approved. If Grayscale’s trust is converted into the world’s largest bitcoin spot ETF, it may face additional pressure to lower fees, benefitting investors.

AI Sentiment: Positive