The SEC is playing a dangerous game. Analysts from the large multinational banking company J.P. Morgan have recently shown themselves optimistic about approval of a spot Bitcoin (BTC) ETF. Today, they are returning to the charge, and are advising against Securities and Exchange Commission (DRY) to dare refuse again such a spot exchange traded fund for the king of cryptos. Otherwise ? Well, the regulator will most certainly expose itself to a violent legal backlash.
Be careful not to push things too far, Gary!
The title above is sort of the warning what do the experts of the J.P. Morgan to the president of the Securities and Exchange Commission, Gary Gensler. In any case, this is the meaning of the comments made by Nikolaos Panigirtzoglou on crypto-media The Block this October 26, 2023.
The JP Morgan strategy manager and his analysts consider, in fact, that the trial that Grayscale Investments bring – and recently won! – against the SEC (following the refusal to convert its GBTC fund into Spot Bitcoin ETF) will not remain an isolated case. On the contrary, it will be an example to follow for many institutional candidates (BlackRock, Ark Invest, Fidelity, etc.), if they see their BTC ETFs rejected by the US regulator.
“Any rejection could trigger lawsuits against the SEC, creating more legal problems for the agency.” (…) And we believe that a new legal battle over the issue of approving a spot Bitcoin ETF is not something the SEC would like to face again. »
Nikolaos Panigirtzoglou, head of strategy at JP Morgan
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A tsunami of legal actions against the SEC if it refuses Bitcoin spot ETFs?
Even if Nikolaos Panigirtzoglou believes ” unlikely “ that the SEC still dares to refuse all requests for spot ETFs from the king of cryptos, this remains in the order of ” possible “. But in the latter case, the plaintiffs will not let the SEC go unpunished for spoil them a huge piece of cake to take in the crypto-asset sector.
Indeed, JP Morgan experts believe that institutional investors are really impatient to benefit from its new cash financial products, based on real bitcoins (and not on dollar settlements, like BTC futures ETFs). A huge hoard that asset management giantslike BlackRock and Fidelity, will not agree to let it go without fighting in court with the SEC.
“Our position indicator based on CME Bitcoin futures – which tend to be used primarily by institutional investors – has soared over the past week. (…) It not only reached the highest level of this year 2023, but also has highs that have not been seen since August 2022, before the collapse of FTX. »
Bad times for Gary Gensler and his institution. Especially that, even internallythe US regulatory agency cracks between its anti-crypto president on one side, and those who want to get things done the other. So that Cathie Woodhead of the ARK Invest fund (which works with SEC staff on its own spot Bitcoin ETF), thinks Gary Gensler is the only obstacle that separates us from a BTC to 1 million dollars.
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