JPMorgan analysts have raised concerns about potential lawsuits if the SEC rejects applications for spot Bitcoin exchange-traded funds (ETFs). While the rejection is not considered likely, it remains possible, and if it were to happen, it could lead to legal challenges from applicants. The recent loss in a lawsuit by Grayscale Investments against the SEC has already put pressure on the regulatory agency to reconsider its stance on crypto-related matters. JPMorgan also anticipates that several spot Bitcoin ETFs may be approved in the near future as asset managers engage with the SEC to address concerns related to market manipulation and fund security. The recent surge in Bitcoin's price, driven by institutional demand, further supports the case for spot Bitcoin ETF approvals.