According to JPMorgan, the potential introduction of spot Bitcoin (BTC) ETFs would not result in a sea change in the cryptocurrency industry. However, while JPMorgan does not see spot Bitcoin ETFs as a major shift, the involvement of financial giants such as BlackRock could indicate a potential paradigm shift.
Finally, Bitcoin ETFs not so “game changing”?
The possible arrival on the market of a spot Bitcoin (BTC) ETF should not be a “ game changer » ; said Nikolaos Panigirtzoglou, managing director at JPMorganthrough a recent report by the financial holding company and largest bank in the United States.
“Spot Bitcoin ETFs have been around for some time outside of the US, Canada and Europe, but have failed to attract investor interest. »
The issue of Bitcoin ETFs has been in the news since BlackRock, the world’s largest asset manager, filed its own application for a spot Bitcoin ETF with the Securities and Exchange Commission (SEC), the US financial regulator responsible for manage these records. In the past, several Wall Street giants have tried it, but the SEC never deigned to agree.
However, given the aura and strength of BlackRock, there may well be a paradigm shift in the United States. Effectively, BlackRock’s impressive history reveals 575 ETFs approved against only 1 rejectedwhich made other Wall Street pundits want to try their luck, like Fidelity, Bitwise, Invesco or Wisdom Tree.
On the other hand, bitcoin futures-based ETFs, although initially able to generate some interest, eventually lost their appeal. More globally, this is the general idea of bitcoin exposure that may have lost its luster According to David Donabedian, Chief Investment Officer of CIBC Private Wealth US, interviewed by Bloomberg:
“I don’t think you’ll see massive flows into these spot ETFs. I don’t feel like there is massive, pent-up demand for bitcoin exposure. »
👉 0% commission on ETFs with the broker XTB
A complete broker for investing
Advantages, but “rather marginal”
According to JPMorgan’s report, however, the arrival of spot Bitcoin ETFs could have some advantages, although ” marginal “. For example, this type of BTC ETF could bring more liquidity to the US market while eliminating some issues such as securities custody.
The latter could also bring more transparency to the market, since it is better able to reflect the real demand of investors for real-time bitcoin versus futures-based ETFs.
However, the hypothetical BTC spot ETF approval could lead to a migration of trading activity based on Bitcoin Futures ETFs, which would translate ultimately by a decline in interest in Bitcoin ETFs in generalat least in the United States.
Despite everything, the fact that the race for spot Bitcoin ETFs is led by titan BlackRock could augur a paradigm shift. Larry Fink, its CEO, also very recently called Bitcoin “ golden digital “. A qualification far from trivial, especially coming from an individual of this stature and yet hostile to the king of cryptocurrencies in the past.
👉 To go further – The United States is now only 9% of Bitcoin (BTC) trading volume
Trade stocks or cryptos
The broker who remunerates uninvested funds 💰
Source: Bloomberg
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products or services. Some links in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
787 items
