Grayscale win raises chances of BTC-ETF approval


The court verdict in the Grayscale case could bring the final approval of the Bitcoin spot ETF closer, although it is unlikely to change the rules of the game for the crypto market. JPMorgan came to this conclusion, writes CoinDesk.

On August 29, a US court granted the petition of Grayscale Investments. The Court of Appeal ordered the Commission to review its decision.

In June, the asset manager sued the regulator for refusing to convert GBTC into an ETF. The company submitted an application to the SEC for product conversion in October 2021.

JPMorgan analysts are convinced that after the verdict, the agency will have no choice but to approve several applications to launch a spot bitcoin ETF. They recalled that the court called the SEC’s refusal “wrongful and arbitrary.”

Spot market fraud and manipulation poses the same risk for both futures and spot products, according to the statement, as “they […] closely related.” As a result, there is no reason to allow bitcoin ETFs based on futures, but to ban spot ETFs, the specialists pointed out.

To maintain its position on GBTC conversion, the SEC will have to withdraw approvals for digital gold futures exchange-traded funds, which is “unlikely as it would be discouraging and disruptive [для репутации]”, according to experts.

JPMorgan doubts that a change in the regulator’s attitude towards spot bitcoin ETFs will significantly affect the situation on the crypto market due to low interest in the product in those jurisdictions where they are allowed.

Recall that the event forced Bloomberg analysts James Seyffart and Eric Balciunas to increase the likelihood of launching such products in the US by the end of 2023 to 75%.

Earlier, the former head of the SEC, Jay Clayton, called the approval of the spot bitcoin ETF inevitable.

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