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SEC Likely to Approve Spot Bitcoin ETF in Next Few Months: JPMorgan
Approval is likely before Jan. 10, which is the final deadline for the Ark 21Shares applications, the report said.
Updated Mar 9, 2024, 1:57 a.m. Published Oct 20, 2023, 9:59 a.m.
Bitcoin (BTC) has gained this week due to increased optimism about the potential approval of multiple spot bitcoin exchange-traded-funds (ETFs), JPMorgan (JPM) said in a research report Wednesday.
The Securities and Exchange Commission’s (SEC) decision not to appeal a recent ruling in the Grayscale case brings the approval of the applications closer, the report said. Grayscale is the manager of the Grayscale Bitcoin Trust (GBTC), the largest cryptocurrency fund in the world.
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Timing of an approval is unclear, but should happen within months, and probably before Jan. 10, the final deadline for the Ark 21Shares applications, analysts led by Nikolaos Panigirtzoglou wrote.
ETFs are traded on an exchange, like stocks, and track the performance of an underlying asset. They are popular because they allow investors to gain access to cryptocurrencies without having to purchase the underlying digital assets themselves. They are also cheaper to trade. The crypto market is hopeful that the approval of a spot bitcoin ETF will lead to a flood of mainstream money into the sector.
The bank reiterated its view that the regulator was likely to approve multiple applications at once rather than grant a “first mover advantage” to any single applicant.
JPMorgan said such a move could be beneficial for investors as it would encourage competition in regards to ETF fees.
“Grayscale will likely face greater pressure to lower fees if the trust gets approval to be converted into an ETF,” the report said.
CoinDesk’s parent company, Digital Currency Group, also owns Grayscale.
Read more: Spot Bitcoin ETF Excitement Hits Main Street, Google Search Indicates
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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