- The United States SEC has less than 45 days to appeal the Grayscale Investments ruling, which most legal analysts think will not happen due to a lack of merits.
- With the EFT timelines, experts think the SEC could approve all the Bitcoin ETF applications at once in the next six months.
The hopes for a spot in Bitcoin Exchange Traded Funds (ETF) in the United States were rejuvenated late last month after the United States Court of Appeals for the D.C. Circuit, through a three-judge bench, unanimously ruled in favor of Grayscale Investment and against the SEC.
According to a prediction issued by JPMorgan analysts led by Nikolaos Panigirtzoglou to the investors on Friday, the United States Securities and Exchanges Commission will be forced to approve a spot Bitcoin ETF.
Notably, the Securities and Exchanges Commission said last Thursday that it would delay the decisions on spot Bitcoin ETFs from various firms – including BlackRock, Fidelity, and Invesco – until at least mid-October. Although the SEC is likely to appeal during the 45-day window, JPMorgan analysts think the move is much more unlikely due to a lack of merits.
As a result of last week’s postponement of the Bitcoin ETF ruling, JPMorgan analyst thinks the SEC is likely to approve multiple applications at once rather than granting a first-mover advantage to any single applicant. JPMorgan analysts noted;
That could be beneficial for investors as it would allow for more competition in terms of ETF fees. Grayscale will likely face even bigger pressure to lower fees if its trust gets approval to be converted to the largest bitcoin spot ETF in the world,
What Spot Bitcoin ETF Means for Entire Crypto Market
According to Matt Hougan, Bitwise Investments CIO, the United States Securities and Exchanges Commission has a limited time of up to six months to either find other reasons to deny a Bitcoin ETF or approve all unanimously. Arguably, the approval of a spot Bitcoin ETF could coincide with the fourth halving event next year, which could significantly catalyze the crypto bullish sentiment. Moreover, experts believe a lot of money from institutional investors is lying on the sidelines awaiting the approval of the spot Bitcoin ETF.
Essentially, every spot Bitcoin ETF issued is backed by an on-chain and verifiable Bitcoin asset. As a result, institutional investors can get direct exposure to digital assets with enhanced liquidity.
Currently, the total crypto market capitalization is about $1.08 trillion with the total value locked (TVL) at around $37 billion. The approval of a spot Bitcoin ETF could see more players enter the crypto market around the world. Moreover, the acceptance of digital assets by the United States through the judicial system will significantly impact its allies. Meanwhile, it is worth noting that several other jurisdictions including Canada, Australia, and Brazil among others have approved Bitcoin ETFs. The more Bitcoin ETFs are approved, the more Bitcoins are removed from circulation thus fueling the demand vs. supply crisis.
