Search Inside Bitcoins

Grayscale Legal Win Indicates SEC More Likely To Approve Spot Bitcoin ETFs, JPMorgan Says

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Spot Bitcoin ETFS will likely be approved, JP Morgan says
Spot Bitcoin ETFS will likely be approved, JP Morgan says

Join Our Telegram channel to stay up to date on breaking news coverage

Grayscale’s landmark legal win against the Securities and Exchange Commission (SEC) last week indicates the regulator will likely approve spot Bitcoin ETFs, JP Morgan said.

The ruling has left the watchdog in a difficult spot because the court said the SEC’s disparate treatment of futures-based and spot Bitcoin ETFs lacked justification as both face a similar risk of fraud and manipulation, said analysts led by Nikolaos Panigirtzoglou. The court called the SEC’s decision to approve futures ETFs but not spot Bitcoin investment products “arbitrary and capricious.”

Because the SEC is unlikely to risk the disruption and embarrassment of retracting its previous support for futures-based ETFs, it is very likely to approve the applications for spot Bitcoin ETFs, including Grayscale’s, the analysts said.


Seven firms, including BlackRock and Fidelity, have applied to launch spot Bitcoin ETFs. The SEC last week also deferred a decision on the applications until at least next month.  The delay hints at a possible simultaneous approval of multiple spot Bitcoin ETF applications, said JPMorgan.

Bitcoin ETFs To Have Limited Impact Crypto Market

JPMorgan is sceptical that the launch of spot Bitcoin ETFs will bring about a transformative change in the cryptocurrency market, as some have suggested. 

They note that spot Bitcoin ETFs have been operational in Canada and Europe for a considerable time but have failed to attract substantial investor interest. The analysts also argued that the outflows from gold ETFs over the past year have not significantly benefited Bitcoin funds, including futures-based ETFs. 

They added that the advantages of spot Bitcoin ETFs over their futures-based counterparts are small.

Former SEC Chairman Echoes JP Morgan

Former SEC Chairman Jay Clayton had earlier said that approval of a spot Bitcoin ETF is “inevitable.” He emphasized that Bitcoin should not be classified as a security and pointed out the inconsistency of allowing futures-based products while denying spot-based ones. 

Related Articles

Smog (SMOG) - Meme Coin With Rewards


Smog token
  • Airdrop Season One Live Now
  • Earn XP To Qualify For A Share Of $1 Million
  • Featured On Cointelegraph
  • Staking Rewards - 42% APY
  • 10% OTC Discount -
Smog token

Join Our Telegram channel to stay up to date on breaking news coverage

Read next