The approach of the United States Securities and Exchange Commission (SEC) towards spot Bitcoin exchange-traded funds (ETFs) is sparking debate. According to JPMorgan’s recent analysis, if the SEC chooses not to approve such applications, this decision could be taken to court by the applicants.
Reactions Increase Regarding Potential Bitcoin ETF Rejection
JPMorgan’s lead analyst team head, Nikolaos Panigirtzoglou, stated: ”Any rejection could trigger lawsuits against SEC creating more legal troubles for the agency,” adding that the SEC wouldn’t want this.
“We believe that a new legal battle on the issue of spot bitcoin ETF approval is not something that the SEC would be willing to face again.”Nikolaos Panigirtzoglou
The case won by Grayscale forced the SEC to review its decision regarding Bitcoin trust. With the impact of this decision, analysts expect the agency to approve multiple spot Bitcoin ETFs in the coming months. Asset managers, on the other hand, are taking steps to make some changes to their applications on issues such as technical preparation and market manipulation in order to make more solid progress with the SEC.
Additionally, according to JPMorgan’s evaluations, Bitcoin’s recent performance is shaped more by the demand of institutional investors, as opposed to individual investors.
Source: The Block