Optimism regarding SEC registration of many spot Bitcoin ETFs has “increased,” with a positive decision expected “within months.” JPMorgan analysts came to this conclusion, writes The Block.
Experts drew attention to the lack of an appeal from the Commission against the court decision in the Grayscale case. The regulator was obliged not to interfere with the transformation of the Bitcoin trust into an exchange-traded fund.
“Approval terms […] remain unclear, but it’s probably going to happen […] until January 10, 2024 — final deadline for application ARK Invest and 21 Co. This is the earliest of various deadlines that the SEC must respond to.” – the document says.
Experts emphasized that the Commission can satisfy all proposals at once in order to ensure fair competition.
Analysts have predicted Grayscale will reduce its GBTC management fee and neutralize the product’s discount to NAV after converting it into an ETF. They estimated the total effect of the latter at $2 billion.
On October 19, the discount of the Bitcoin trust from Grayscale Investments to NAV decreased to the lowest since November 2021, 12.54%.
At the beginning of the year the figure was 48.31%. The situation changed dramatically in July when BlackRock filed an application to launch a Bitcoin ETF. After this, GBTC quotes from Grayscale Investments increased by 57%, the discount decreased from 41.7% to 29.3%. Continuing the momentum in recent days was the lack of an SEC appeal against the decision in the case against Grayscale.
Let us recall that in September JPMorgan doubted that the launch of the product would change the rules of the game for the crypto market due to the low interest in ETFs in those jurisdictions where they were allowed.
Previously, Matrixport analysts predicted the growth of digital gold as a result of the approval of the instrument to $42,000-56,000. CryptoQuant received values of $50,000-73,000.
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2023-10-20 07:15:15
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