According to JPMorgan analysts, the SEC could face multiple lawsuits if it does not approve spot Bitcoin ETFs.
According to the research report shared by JPMorgan yesterday, the SEC may face legal difficulties if it does not make the decision that the cryptocurrency community is hoping for.
There are 12 spot Bitcoin ETF applications pending evaluation before the US Securities and Exchange Commission (SEC). The expectation that these will be approved pushed the Bitcoin price above $35,000.
According to the JPMorgan report, “Any rejection decision could trigger litigation against the SEC and create further legal challenges for the commission.”
Grayscale Investments, which was trying to convert its Bitcoin fund into an ETF, won against the SEC in court a few weeks ago. The SEC, which did not object to the decision, had to re-evaluate Grayscale’s application.
JPMorgan analyst Nikolaos Panigirtzoglou notes that it is unlikely but still “possible” that the SEC will reject Bitcoin ETFs:
“We do not believe the SEC will want to face another legal battle over the approval of spot Bitcoin ETFs.”
The JPMorgan team stated that institutional investors also had a share in the rise in Bitcoin price this week.