JPMorgan predicts that the United States Securities and Exchange Commission (SEC) will be compelled to approve spot Bitcoin exchange-traded funds (ETFs) following Grayscale Investments’ recent court victory. Grayscale argued that spot BTC ETFs meet the same criteria for market manipulation and fraud concerns as already approved Bitcoin futures ETFs, rendering the SEC’s rejection of spot Bitcoin ETF applications arbitrary. The analysts believe that the SEC would have to revoke its previous approval of futures-based Bitcoin ETFs to defend their denial of Grayscale’s bid, which would be disruptive and embarrassing for the agency. Consequently, it is more probable that the SEC will be forced to greenlight the spot Bitcoin ETF applications from various financial institutions, including Grayscale and BlackRock. However, JPMorgan suggests that while this development brings us closer to the listing of spot Bitcoin ETFs for US customers, it is unlikely to be a game changer for the crypto market.

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