JPMorgan’s analysts, led by Nikolaos Panigirtzoglou, have highlighted the escalating situation around Bitcoin ETFs. Significantly, they highlighted that if the United States Securities and Exchange Commission (SEC) rejects spot Bitcoin exchange-traded fund applications, it might open the door to legal backlash from applicants. Consequently, the SEC could be engulfed in further legal tussles.
Moreover, Panigirtzoglou mentioned the potential rejection, while not probable, remains possible. The implication of another legal confrontation over the spot Bitcoin ETF approval is an avenue the SEC prefers to avoid.
JPMorgan Foresees Imminent Bitcoin ETF Approvals
Notably, the SEC recently suffered a loss in a lawsuit filed by Grayscale Investments. Grayscale emerged victorious, with the verdict urging the SEC to rethink the crypto asset manager’s application. This aimed to convert its existing Bitcoin trust into a spot Bitcoin ETF. The SEC, choosing not to contest the decision, had the ruling finalized just this week.
Additionally, JPMorgan anticipated several spot Bitcoin ETF approvals in the coming months. Today’s insights reveal that asset managers are advancing their discussions with the SEC. This progress is marked by technical preparations and revised filings addressing concerns such as market manipulation and the mingling of customer funds.
Institutional Buyers Propel Bitcoin’s Sharp Rise
Bitcoin’s price has seen an impressive surge, increasing nearly 20% over the past week. This uptrend isn’t just a random fluctuation. According to JPMorgan’s analysis, institutional demand primarily propels it. Interestingly, the data from CME Bitcoin futures, popular among institutional investors, showcases this trend. However, Ethereum futures positions on the CME platform have yet to mirror the same enthusiasm. Furthermore, a notable increase in Bitcoin transfers to larger wallets emphasizes the heightened demand from institutional stakeholders.
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