SEC Likely to Approve Spot Bitcoin ETF in Next Few Months: JPMorgan
Approval is likely before Jan. 10, which is the final deadline for the Ark 21Shares applications, the report said.
Bitcoin (BTC) has gained this week due to increased optimism about the potential approval of multiple spot bitcoin exchange-traded-funds (ETFs), JPMorgan (JPM) said in a research report Wednesday.
The Securities and Exchange Commission’s (SEC) decision not to appeal a recent ruling in the Grayscale case brings the approval of the applications closer, the report said. Grayscale is the manager of the Grayscale Bitcoin Trust (GBTC), the largest cryptocurrency fund in the world.
Timing of an approval is unclear, but should happen within months, and probably before Jan. 10, the final deadline for the Ark 21Shares applications, analysts led by Nikolaos Panigirtzoglou wrote.
ETFs are traded on an exchange, like stocks, and track the performance of an underlying asset. They are popular because they allow investors to gain access to cryptocurrencies without having to purchase the underlying digital assets themselves. They are also cheaper to trade. The crypto market is hopeful that the approval of a spot bitcoin ETF will lead to a flood of mainstream money into the sector.
The bank reiterated its view that the regulator was likely to approve multiple applications at once rather than grant a “first mover advantage” to any single applicant.
JPMorgan said such a move could be beneficial for investors as it would encourage competition in regards to ETF fees.
“Grayscale will likely face greater pressure to lower fees if the trust gets approval to be converted into an ETF,” the report said.
CoinDesk’s parent company, Digital Currency Group, also owns Grayscale.

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Apparently, they're pushing for changes at the top, and Gensler's aggressive regulatory stance on cryptocurrencies has made him a divisive figure ³.

But what does this mean for the crypto world? Well, if Gensler is replaced, it could bring about significant changes in the regulatory landscape. Some experts believe that his departure could lead to a more favorable environment for cryptocurrencies ⁴. On the other hand, others argue that a change in leadership might not necessarily translate to a complete overhaul of the SEC's crypto policies ⁵.

It's worth noting that Gensler has been a key player in shaping the SEC's approach to cryptocurrency regulation. During his tenure, he's likened the crypto market to the "Wild West" and advocated for stricter regulations ⁶. However, his stance has also been met with opposition from some lawmakers and industry players.

*Possible Implications of Gensler's Departure:*

- _Shift in Regulatory Tone_: A new SEC Chair might adopt a more lenient approach to cryptocurrency regulation.
- _Changes in Crypto Exchange Regulations_: The SEC's stance on crypto exchanges and trading platforms could be reevaluated.
- _Impact on Bitcoin ETFs_: Gensler's opposition to pure play bitcoin ETFs might be revisited by a new Chair.

Stay tuned for further developments, as this story continues to unfold!

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