JPMorgan says SEC would likely be forced to approve spot bitcoin ETFs following Grayscale’s win The

JPMorgan says SEC would likely be forced to approve spot bitcoin ETFs following Grayscale’s win The United States Securities and Exchange Commission (SEC) will likely have no choice but to approve multiple spot bitcoin exchange-traded fund (ETF) applications following Grayscale’s victory in its case against the SEC, according to JPMorgan. Grayscale’s win implies that the SEC would have to retroactively withdraw its previous approval of futures-based bitcoin ETFs in order to defend its denial of Grayscale’s proposal of converting its bitcoin trust into an ETF. Earlier this week, a federal court ruled that the SEC must review its rejection of Grayscale’s attempt to convert the Grayscale Bitcoin Trust (GBTC) into an ETF. The court ruled that there was no justification for the SEC to allow bitcoin futures-based ETFs but deny spot bitcoin ETFs because fraud and manipulation in the bitcoin spot market pose a similar risk to both futures and spot products because the spot bitcoin market and the CME bitcoin futures market are so tightly correlated. Therefore, the SEC’s rejection of Grayscale’s proposal was “arbitrary and capricious” because the agency failed to explain its different treatment of similar products, the court ruled.