The SEC in trouble? Decidedly, the current period will be recorded in the crypto annals as the Bitcoin ETF spot season. A dynamic whose the approval has just been postponed by the United States Securities and Exchange Commission (SEC) at the end of last week. But many analysts agree on a possible positive outcome before the end of the year. An optimism in which the bank JP Morgan participates. The latter is convinced that the regulatory body will be “forced” to give in following its embarrassing failure against Grayscale. Explanation…
The SEC in an “embarrassing” situation
Everything ends up being paid for, even – or especially – in the cryptocurrency sector. A rule which has just come up against violently the Securities and Exchange Commission (SEC) of the United States. Indeed, this regulatory body known for its aggressive policy with regard to this ecosystem has just accountable in his case against the company Grayscale. Result: she cannot oppose the transformation of its Grayscale Bitcoin Trust (GBTC) into a cash ETF.
A historic decision presented by the court in charge of the case as coming from of an “arbitrary and capricious” will of the SEC. And a real snub for its president Gary Gensler which he will certainly have a hard time recovering from. Indeed, this open breach in its policy of burning crypto could well oblige it to much more.
At least that’s what analysts at investment bank JP Morgan say. A structure known for his recurring predictions about the cryptocurrency market. This about the many pending approvals for spot Bitcoin ETFs piling up on this regulator’s desk.
“It seems more likely that the SEC will be forced to approve the Bitcoin spot ETF applications that are still pending from several asset managers, including that of Grayscale. »
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A beneficial opportunity for investors, according to JP Morgan
This postponement by the SEC, however, could represent a very attractive option for crypto investors. It is in any case a possibility considered by analysts at JP Morgan bank. Is this a voluntary strategy of the regulatory body, possibly to the disadvantage of Grayscale ? Nothing can confirm it.
Be that as it may, this new deadline set for mid-November probably indicates “simultaneous approval of multiple spot Bitcoin ETF applications”. And it could help avoid to grant a first-mover advantage to a single candidate”. Grayscale will therefore immediately have to deal with strong competition!
” This situation could be beneficial for investors, as it would allow more competition in terms of ETF fees. Grayscale will likely face even greater pressure to cut fees if its trust wins approval to convert to become the world’s largest Bitcoin spot ETF. »
Not (too much) excitement though. Because even though all the attention of the crypto ecosystem seems to be focused on this endorsement of spot Bitcoin ETFs, “ it is unlikely to be a game-changer for the cryptocurrency market “. A finding made last July by JP Morgan analysts given the “rather marginal” advantages of this financial vehicle compared to futures ETFs. which amounts to presenting the holding of his BTC like a simple detail of the course…
Everything therefore seems to suggest a positive outcome in this issue of Bitcoin spot ETFs. Even the specialized media Bloomberg estimates a 75% chance of seeing these financial vehicles approved before the end of the year. An equation from which, however, SEC Chairman Gary Gensler should not be removed too quickly. Because the bitter failure suffered in the case against Grayscale could well instill revenge ambitions.
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