Following Grayscale’s victory in its lawsuit against the SEC, the U.S. Securities and Exchange Commission (SEC) may have no choice but to approve multiple spot bitcoin exchange-traded fund (ETF) applications, JPMorgan said.
JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note Friday that Grayscale’s victory means the SEC will have to retroactively revoke its previous approval of a futures-based bitcoin ETF in order to uphold its rejection of Grayscale. A proposal to convert its bitcoin trust into an ETF.
As such, it seems more likely that the SEC will be forced to approve spot bitcoin ETF applications that several asset managers have not yet approved, including Grayscale’s.