JPMorgan Says SEC Will Face Lawsuits if Bitcoin ETFs are Rejected
According to experts at JPMorgan, the US Securities and Exchange Commission (SEC) could potentially face multiple lawsuits if it rejects applications for spot exchange-traded funds based on the first cryptocurrency.
Nikolaos Panigirtzoglou, managing director at JPMorgan, stated that the SEC would be reluctant to undergo another legal battle over approving spot Bitcoin ETFs.
Although the probability of this scenario is low, it is still possible.
Panigirtzoglou also noted that asset managers have made progress in addressing technical concerns and revising documents to communicate clear provisions on market manipulation and the pooling of client funds.
The recent spike in Bitcoin’s value to $35,000 was driven by institutional demand, indicating a shift away from the retail-focused performance seen in previous quarters.
“Our position in Bitcoin futures on the CME, which is primarily utilized by institutional investors, has significantly increased in the last week, reaching the highest level of the year and matching levels last seen in August 2022,” explained the JPMorgan analysts.
