Analysts at JP Morgan are optimistic about the approval of a Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) before the close of 2023. According to the Wall Street giant, the much-anticipated ETF could be greenlit just in time for the festive season.
The report released on Wednesday suggests that the SEC is likely to approve a spot Bitcoin ETF before January 10, 2024. Bloomberg Intelligence analysts echoed this sentiment, putting the probability of approval at a staggering 90%. This potential breakthrough could mark a significant milestone for the cryptocurrency market, providing Wall Street with a more accessible and secure means to invest in the digital asset.
An ETF, or exchange-traded fund, is a popular investment vehicle that mirrors the value of an underlying asset. In the case of Bitcoin, this would offer investors a regulated way to gain exposure to the cryptocurrency market. While the SEC has given the green light to Bitcoin futures ETFs, a spot Bitcoin ETF has faced repeated rejections, primarily due to concerns about potential market manipulation.
The ProShares Bitcoin Strategy ETF, a futures-based offering, initially saw substantial interest during its launch in a bullish market. However, the excitement has since waned, with assets under management currently standing at $902 million, a decrease from its initial surge.
Investors have long awaited the approval of a spot Bitcoin ETF, seen as a more direct and authentic representation of the cryptocurrency market. Recent developments have fueled renewed hope, with BlackRock, the world’s largest fund manager, submitting its own application for a Bitcoin ETF. Additionally, fund manager Grayscale achieved a legal victory as a federal judge ruled in favor of its application to convert its flagship Bitcoin fund into an ETF.
As the holiday season approaches, the crypto community watches with bated breath, hoping that the SEC will indeed deliver a Christmas miracle by granting approval for the highly anticipated spot Bitcoin ETF.
