Analysts from JPMorgan have predicted that the US Securities and Exchange Commission (SEC) is likely to approve several spot Bitcoin Exchange-Traded Funds (ETFs) following Grayscale’s legal victory against the SEC. A federal court ordered the SEC to reconsider its rejection of Grayscale’s application to transform its Bitcoin Trust into an ETF, calling the SEC’s denial “arbitrary and capricious.” The SEC has also delayed its decision on spot Bitcoin ETF proposals from companies like BlackRock and Fidelity. JPMorgan’s analysts interpret this delay as a sign that the SEC is inclined to approve multiple spot Bitcoin ETF applications concurrently, leading to increased competition and potentially lower ETF fees. However, the analysts cautioned that while spot Bitcoin ETFs offer certain advantages, they have not attracted significant investor interest in Canada and Europe. Nonetheless, Grayscale’s legal victory could set a precedent and pave the way for the approval of multiple spot Bitcoin ETFs, injecting more competition into the market.
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