For JP Morgan, the Bitcoin ETF is not the hoped-for game-changer

In recent weeks, applications for obtaining a Bitcoin ETF have multiplied. A dynamic launched by the asset manager BlackRock, which, according to several analysts, could impact the crypto market. Investment bank JP Morgan believes that prospect is unlikely to materialize.

Approval of a bitcoin ETF would have no crypto impact according to JPMorgan

Will the SEC eventually approve the launch of the first-ever Bitcoin exchange-traded fund? Some analysts have established that there is a 50% chance of this happening. But even if the regulator were to approve one of the many requests it received, the crypto market would not be impacted.

This opinion comes from the investment bank JP Morgan. Friday, July 7, the American financial group made known its position regarding speculation around this issue. His argument in fact is that the realization of such an outlook could disappoint the crypto market.

“The potential approval by the SEC [Securities and Exchange Commission, Ndlr] Physically Backed Bitcoin ETFs Shouldn’t Be a Game Changer for Crypto Marketssays JP Morgan in a report.

The opinion of the financial institution is based on a number of elements. The first concerns the attractiveness of Bitcoin ETFs. Despite their existence on the Canadian and European financial markets, for example, they have hardly aroused the interest of investors.

This trend seems confirmed by the dynamics of ETFs linked to gold. Last year, these suffered significant outflows of funds. A situation which, according to JP Morgan, has not benefited bitcoin funds either, not even futures ETFs.

The second element, mentioned by the American bank, concerns the profitability of ETFs. Overall, JP Morgan notes that it is not substantial. This is despite the fact that spot bitcoin ETFs are significantly more advantageous than those based on futures contracts.

Unlike the latter, spot Bitcoin ETFs promote investor exposure to bitcoin. This, by limiting the constraints linked to ETFs on futures contracts, particularly those relating to the custody and transfer of cryptos.