JPMorgan analysts shared their opinion on the Bitcoin spot ETF applications and said that there are very few chances where the SEC body will give a chance for an individual firm to enjoy the first mover advantage.
Bitcoin spot ETF products are a way of investing in Bitcoin via centralised funds with high transparency. So far a dozen Bitcoin spot ETF applications are in queue to get approval from the United States Securities and Exchange Commission (SEC). In the past (between Dec 2021 to the date), the SEC body rejected all such applications.
Recently, JPMorgan analysts led by Nikolaos Panigirtzoglou shared their prediction on the Bitcoin spot ETF applications and said that there are huge chances that huge numbers of such products will get approval simultaneously in a few months.
According to the analysts, the SEC agency will not provide a chance for any applicants to enjoy the first mover advantage, so there are chances that they will approve multiple Bitcoin spot ETF products at once.
As per their prediction, the first Bitcoin spot ETF approval will come before 10 Jan 2023 which is a deadline for applications for Ark Invest and 21Shares.
These analysts noted that the SEC decided not to appeal in the Grayscale suit and that is a type hint that the American financial regulator is in the mood to approve these applications.
Currently, the top Bitcoin investment fund is Green Bitcoin (GBTC) by the American digital assets fund manager Grayscale, a subsidiary of Digital Currency Group (DCG). According to analysts, the GBTC’s discount to net asset value will likely disappear due to the share redemption/creation arbitrage mechanism in the ETF structure. So with the elimination of the discount, GBTC investors could gain a benefit of nearly $2 billion.
Grayscale vs SEC
Grayscale has been trying to convert its GBTC fund into a Bitcoin spot ETF since Dec 2021 but failed, as the SEC body rejected its application.
In response, the Grayscale team sued the SEC body & alleged that the SEC body rejected its application blindly because more risky products Bitcoin futures ETF already approved by the SEC.
50 days ago, the Court judge ruled in favour of Grayscale & ordered the SEC body to review Grayscale’s application again. Notably the Grayscale firm yesterday filed another short form of its Bitcoin spot ETF application with the SEC.
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