Bitcoin spot ETF will definitely be approved! JPMorgan, former SEC chairman Jay Clayton both guarantee

Following the advantage gained in the lawsuit between Grayscale and the SEC, there seems to be renewed enthusiasm for a Bitcoin spot ETF. Although the SEC has delayed the review time for seven Bitcoin spot ETFs, both JPMorgan and former SEC Chairman Jay Clayton believe that the SEC seems to have no choice but to ultimately approve a Bitcoin spot ETF!

JPMorgan Says: SEC Has No Choice

According to a report by The Block, Wall Street giant JPMorgan stated that following Grayscale's advantage in the lawsuit against the SEC, the U.S. Securities and Exchange Commission (SEC) may have no choice but to approve multiple applications for Bitcoin spot ETFs.

After the court ruled last week that the SEC needs to reexamine Grayscale's transformation report, various opinions emerged, suggesting that the SEC only has two options: either approve a Bitcoin spot ETF or remove all futures ETFs as well!

A summary of various opinions: SEC has two options - approve a Bitcoin spot ETF or remove all futures ETFs as well?

This time, JPMorgan also shares the same view. Analyst Nikolaos Panigirtzoglou believes that Grayscale's victory means the SEC will have to retrospectively revoke its previous approval of Bitcoin futures ETFs, as a defense for rejecting Grayscale's proposal to convert its Bitcoin Trust into an ETF. However, such a move would be "extremely awkward and destructive for investors." Therefore,

the SEC is more likely to be forced to approve applications for spot Bitcoin ETFs from multiple asset management companies, including Grayscale.

Fees May Decrease, But Unlikely to Change the Game Rules of the Cryptocurrency Market

Last week, the SEC also postponed the review of seven Bitcoin spot ETFs, pushing the date back to mid-October. JPMorgan analysts stated that this delay "may mean that multiple applications for spot Bitcoin ETFs will be approved simultaneously, rather than providing a first-mover advantage to any single applicant."

Summary of various Bitcoin spot ETFs

This could benefit investors as it will bring more competition in ETF fees. If Grayscale Trust is approved to convert into the world's largest Bitcoin spot ETF, Grayscale may face greater pressure to lower fees.

However, JPMorgan also points out that this approval "is unlikely to change the game rules of the cryptocurrency market." Spot Bitcoin ETFs have been available in Canada and Europe for some time but have not generated strong interest from investors. The outflow of funds from gold ETFs in the past year has not benefited Bitcoin funds, including futures ETFs.

Former SEC Chairman Jay Clayton: Approval Is Inevitable

Former SEC Chairman Jay Clayton stated in an interview with CNBC:

Bitcoin is something that retail investors want access to, institutional investors want access to, and most importantly, those providers we trust the most want to offer to the public. So I think approval is inevitable, and the dichotomy between futures products and spot products cannot last forever.

However, when asked why futures ETFs have been approved but spot ETFs are still pending, Clayton also mentioned giving the SEC an additional 45 days to make a decision!