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JPMorgan Anticipates Approval of Bitcoin ETF in the US by January 2024

10/20/2023

On Wednesday, the 18th, JPMorgan released a statement predicting that the United States Securities and Exchange Commission (SEC) is likely to greenlight a Bitcoin Exchange-Traded Fund (ETF) with a spot price by January 10, 2024, fostering optimism within the cryptocurrency market.


JPMorgan highlighted that the SEC's recent decision not to appeal after losing a case against Grayscale, regarding the conversion of their fund into an ETF, is a signal that approval for pending applications is drawing nearer.


Analysts at the bank assert that the probability of approval is creating an atmosphere of optimism among investors, propelling the price of Bitcoin upward. This week, the cryptocurrency saw a resurgence, hovering around $30,000 again after several weeks of trading closer to $27,000.


JPMorgan emphasizes that there is no clear timeline for the approval of the ETF applications currently under review. Nevertheless, approval is expected to happen before the January 10 deadline, which is the final date for the SEC to respond to Ark Invest's request.


Furthermore, the report suggests that the SEC is more likely to approve multiple Bitcoin ETF applications simultaneously, rather than selecting just one, to avoid granting an advantage to a single applicant under review. This strategy resembles the one employed for Ethereum futures ETFs.


JPMorgan assesses that the simultaneous approval of multiple spot-price Bitcoin ETFs is poised to benefit investors. This scenario is expected to increase competition among asset managers to attract clients and capital, leading to a battle to establish lower fees.


One of the companies that will likely face pressure to reduce its fees due to this competition is Grayscale. If the company's fund is converted into an ETF, it will face significant pressure to lower its fees.


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