SEC Approval of Bitcoin ETF Won't Shift the Game, Say JPMorgan
In a recent report, JPMorgan expressed a measured outlook on the influence a spot bitcoin exchange-traded fund (ETF) would have on cryptocurrency markets, even if the U.S. Securities and Exchange Commission (SEC) gives it the green light. The financial institution pointed out that while the approval of such an ETF is eagerly awaited, it may not be the market-altering event some anticipate.
The analysis, steered by Nikolaos Panigirtzoglou, underlined that spot bitcoin ETFs have been operating outside the U.S. in regions like Canada and Europe, but haven’t managed to draw substantial investor involvement.
The report acknowledges that spot bitcoin ETFs offer a more streamlined and safeguarded avenue for investing in bitcoin compared to futures-based funds. They bypass some of the hurdles concerning the direct handling and transfer of BTC and mitigate the basis risk linked with futures-based offerings.
In conclusion, JPMorgan suggested that spot ETFs could contribute to liquidity and bolster price transparency in spot bitcoin markets as they more accurately mirror real-time supply and demand. However, they do not expect them to revolutionize the crypto market.
The report acknowledges that spot bitcoin ETFs offer a more streamlined and safeguarded avenue for investing in bitcoin compared to futures-based funds. They bypass some of the hurdles concerning the direct handling and transfer of BTC and mitigate the basis risk linked with futures-based offerings.
In conclusion, JPMorgan suggested that spot ETFs could contribute to liquidity and bolster price transparency in spot bitcoin markets as they more accurately mirror real-time supply and demand. However, they do not expect them to revolutionize the crypto market.
