Former SEC Chairman And JP Morgan Foresees U.S. Approval of First Spot Bitcoin ETF

Former SEC Chairman Jay Clayton anticipates U.S. approval of the first spot Bitcoin ETF, backed by major financial institutions.

Former SEC Chair Jay Clayton recently remarked that he predicted that the United States will approve the first Bitcoin exchange-traded fund (ETF) in the near future. This follows a favorable court decision that allowed Grayscale’s GBTC Bitcoin Trust to be converted into a spot ETF. The Bitcoin market has not shown any positive reaction despite the optimism.

Clayton emphasized the growing confidence of big financial institutions in the cash trading of crypto assets, citing examples from Blackrock, Fidelity, and Ark Invest. Concerns about these corporations engaging in manipulative trading practices have been allayed. 

“It’s evident that Bitcoin isn’t a security. Retail and institutional investors seek access to BTC. Trusted providers with fiduciary duties aim to offer BTC to the public. Approval is inevitable,” Clayton stated on CNBC.

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Although the SEC has pushed back decisions on spot Bitcoin ETFs until mid-October, Clayton believes this could be a strategic move for multiple approvals. The delay also gives the SEC time to reassess its previous rejections, especially in light of the recent court ruling. This sets the stage for a pivotal period in U.S. financial regulation.

The former SEC Chairman’s comments indicate a shifting landscape for Bitcoin and crypto assets in the U.S. With institutional backing and a favorable court ruling, the approval of a spot Bitcoin ETF appears more likely than ever. However, the market is still awaiting a bullish sign, and the SEC’s upcoming steps are eagerly anticipated.

JP Morgan on BTC ETFs

JP Morgan analysts, led by Nikolaos Panigirtzoglou, predict the SEC will approve multiple spot Bitcoin ETFs as the SEC would be forced to approve these Bitcoin ETFs. Grayscale’s legal victory against the SEC has contributed to this projection.

Analysts stated the SEC might need to reverse prior approvals of futures-based ETFs to deny Grayscale’s trust conversion and spot Bitcoin ETFs. They find this scenario improbable due to its potential disruption and embarrassment for the SEC.