In a groundbreaking turn of events, the U.S. Securities and Exchange Commission (SEC) is facing mounting pressure to approve a spot Bitcoin ETF after Grayscale's recent victory. Top financial institutions and industry experts believe that the approval of a spot Bitcoin ETF is now inevitable.
According to a research note by JP Morgan analysts led by Nikolaos Panigirtzoglou, the SEC has no other option but to give the green light to this long-awaited investment vehicle.
The SEC has previously delayed its decisions on various spot BTC ETFs, including those proposed by major players like BlackRock, Fidelity Investments, and Invesco. However, this recent delay has sparked speculation that the SEC is preparing to approve multiple spot Bitcoin ETFs simultaneously, rather than granting a first-mover advantage to any single applicant.
The analysts at JP Morgan argue that for the SEC to reject Grayscale's bid to convert its GBTC product into a spot BTC ETF, it would require a complete reversal of its previous approvals of futures-based ETFs. Such a move would not only be highly disruptive but also potentially embarrassing for the SEC.
Therefore, it seems unlikely that the SEC would take this path, making the approval of spot Bitcoin ETF applications from various asset managers, including Grayscale, more probable.
The recent postponement by the SEC suggests that multiple spot Bitcoin ETFs could be approved at once, leading to increased competition in terms of ETF fees. If Grayscale's trust is granted approval to become the largest Bitcoin spot ETF in the world, it would face even greater pressure to lower fees.
This development could be highly beneficial for investors, providing them with more options and potentially driving down costs.
As the SEC's decision looms, the cryptocurrency community eagerly awaits the outcome, which could reshape the landscape of Bitcoin investments and pave the way for a new era of accessibility and competition in the market.
