JPMorgan Analysts Say Spot Bitcoin ETF Approval Is ‘Unlikely to Be a Game Changer for Crypto Markets’

In a study published connected Thursday, JPMorgan analysts suggest that the support of a spot bitcoin exchange-traded money (ETF) by the U.S. Securities and Exchange Commission (SEC) is “unlikely to beryllium a crippled changer for crypto markets.” The marketplace strategists astatine the American banking elephantine stress that akin spot bitcoin ETFs already beryllium internationally, but they person not gained overmuch popularity among investors.

JPMorgan Analysts Doubt Impact of Spot Bitcoin ETF Approval connected Crypto Markets

Over the past fewer weeks, determination has been important treatment among bitcoin proponents regarding the imaginable support of a spot bitcoin (BTC) exchange-traded money (ETF) by the U.S. Securities and Exchange Commission (SEC). In mid-June, Blackrock, the world’s largest plus manager, filed for a spot bitcoin ETF. Following this registration, galore different institutions submitted applications for comparable exchange-traded products.

According to marketplace observers, the caller launch of EDX, a cryptocurrency speech supported by Charles Schwab, Citadel Securities, and Fidelity Digital Assets, coupled with the filings for ETFs, has resulted successful an summation successful BTC prices. JPMorgan analysts, successful a study published connected Thursday, explicit uncertainty astir the transformative interaction of a spot bitcoin ETF connected the crypto markets, however, adjacent if it receives support from the SEC.

“The imaginable support of physically backed bitcoin ETFs by the SEC is improbable to beryllium a crippled changer for crypto markets,” the analysts said. “Spot bitcoin ETFs person existed for immoderate clip extracurricular the U.S., successful Canada and Europe, but person failed to pull ample capitalist interest.” The bank’s marketplace strategists noted that Canada’s Purpose Bitcoin ETF (BTCC CN) has been astir for 2 years without overmuch attention.

While determination was immoderate archetypal upside pursuing the motorboat of derivatives-related BTC ETFs, adjacent exchange-traded products based connected futures are not generating the organization involvement they antecedently attracted. The JPMorgan analysts explained, “Bitcoin funds overall, including futures-based and physically backed funds, person attracted small capitalist involvement since Q2 2021, besides failing to payment from capitalist outflows from golden ETFs implicit the past twelvemonth oregon so.”

JPMorgan’s remarks travel successful the aftermath of a caller Wall Street Journal report, which indicated that insiders with cognition of the securities regulator informed Cboe and Nasdaq, the listing applicants, that their applications were deemed “inadequate.” Subsequently, pursuing the report, several ETF filings were resubmitted, with Coinbase being named arsenic the spouse for the surveillance-sharing statement (SSA). Fidelity, Vaneck, Invesco, Wisdomtree, and Blackrock resubmitted their filings astatine the extremity of June, portion Valkyrie refiled connected July 3rd.

What bash you deliberation the interaction of a spot bitcoin ETF getting support by the SEC would be? Share your thoughts and opinions astir this taxable successful the comments conception below.