JPMorgan stated that if the US Securities and Exchange Commission (SEC) rejects the application for a bitcoin exchange-traded fund (ETF), it may face legal action from the applicant. JPMorgan analyst Nikolaos Panigirtzoglou wrote that any rejection could potentially lead to lawsuits against the SEC, causing more legal trouble for the agency. Although the likelihood of such a rejection is low, it is still possible. We believe that the SEC would not want to face another legal battle over the approval of a bitcoin ETF. Last week, JPMorgan stated that it expects multiple bitcoin ETFs to be approved within "a few months." Today, it stated that asset management companies appear to be making progress with the SEC in terms of technical preparation and document modifications to clarify issues such as market manipulation and commingling of client funds.