JPMorgan casts doubt on significant impact of potential bitcoin ETF approval: ‘unlikely to be a game changer’

JPMorgan’s recently published research report suggests that the approval of a spot bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) will not bring about a transformative change in the crypto markets. The report emphasizes that similar ETFs in Canada and Europe have not generated significant investor interest, indicating that the approval in the United States may not have the groundbreaking impact that many anticipate.

According to the report, JPMorgan’s strategists, led by Nikolaos Panigirtzoglou, believe that the potential approval of physically backed bitcoin ETFs by the SEC is unlikely to be a game changer for the crypto markets. They cite several factors that contribute to their skepticism. One factor is the existence of spot bitcoin ETFs in Canada and Europe for a substantial period, which has failed to attract substantial investor attention. Additionally, the report highlights that even though outflows from gold ETFs in the past year have not benefited bitcoin funds, including futures ETFs.

Considering the historical performance of bitcoin ETFs in other regions and the lack of significant correlation between gold and bitcoin investment flows, the report casts doubts on the transformative effect of approving a spot bitcoin ETF in the United States. JPMorgan’s analysis underscores the importance of considering various factors beyond regulatory approval when evaluating the overall impact on the crypto market.

The filing of paperwork by a BlackRock unit last month to establish a spot bitcoin ETF has encouraged other asset managers, such as Invesco and Wisdom Tree, to either apply or reapply for similar offerings. Larry Fink, the CEO of BlackRock, made comments on July 6 that further fueled Bitcoin prices, resulting in the cryptocurrency reaching a 13-month high. However, concerns about interest rates in the United States later caused the coin’s value to decline again.

Despite the release of the JPMorgan report, the price of bitcoin (BTC) has remained relatively stable, experiencing a decrease of only 0.12% in the last 24 hours.

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