SEC Approval of Spot Bitcoin ETF Is Unlikely to Be a Game Changer for Crypto Markets: JPMorgan
Such ETFs have existed for some time in Canada and Europe, but have failed to attract large investor interest, the report said.

Any U.S. Securities and Exchange Commission (SEC) approval of a spot bitcoin exchange-traded fund (ETF) will not be a game changer for crypto markets for a number of reasons, JPMorgan (JPM) said in a research report Thursday.
While the SEC has yet to approve such an ETF – despite receiving numerous applications – there is now more optimism the regulator will approve one because some of the previous concerns are assumed in recent filings, JPMorgan said.
“Spot bitcoin ETFs [have] existed for some time outside the U.S., in Canada and Europe, but have failed to attract large investor interest,” analysts led by Nikolaos Panigirtzoglou wrote.
A unit of BlackRock filed paperwork last month for the , prompting other asset managers such as and to apply or reapply as well.
“Bitcoin funds overall, including futures based and physically backed funds, have attracted little investor interest since Q2 2021, also failing to benefit from investor outflows from gold ETFs over the past year or so,” the report said.
Physical backed bitcoin ETFs offer some advantages over futures-based funds, but these are rather marginal, the note said. Spot ETFs offer a more direct and secure way to gain exposure to bitcoin, removing some of the complexities around direct custody and transfer of BTC and the basis risk associated with futures-based products.
“Spot ETFs are more likely than futures based ETFs to reflect real time supply and demand and their approval in the U.S. would bring more liquidity and enhance price transparency in spot bitcoin markets,” the report added.
The introduction of spot bitcoin ETFs could lead to a migration of trading activity and liquidity away from U.S. bitcoin futures markets, “to the extent spot bitcoin ETFs replace futures-based bitcoin ETFs,” the bank said.
Edited by Sheldon Reback.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Under pressure, Trump’s crypto czar divests his $200M+ crypto holdings
David Sacks divested over $200 million in digital-asset holdings to avoid conflicts of interest. Senator Elizabeth Warren criticized Sacks, questioning his crypto holdings. Sacks’ divestment details were revealed shortly before Warren’s letter requesting crypto ownership clarification.

Smart Contract Risks Could Be Global Finance’s Ticking Time Bomb, Warns Movement Labs Co-Founder
Cooper Scanlon emphasizes the serious vulnerabilities in blockchain infrastructure, especially Ethereum, highlighting the growing threat to global finance and calling for secure innovations like Move programming.

VIPBitget VIP Weekly Research Insights
Over the past month, the cryptocurrency market has faced a downturn due to multiple factors. Global macroeconomic uncertainties, such as shifts in U.S. economic policies and the impact of tariffs, have heightened market anxiety. Meanwhile, the recent White House crypto summit failed to deliver any significant positive news for the crypto market, further dampening investor confidence. Additionally, fluctuations in market sentiment have led to capital outflows, exacerbating price declines. In this volatile environment, selecting stable and secure passive-income products is more crucial than ever. Bitget offers solutions that not only provide high-yield fixed-term products but also flexible options for users who need liquidity. Furthermore, with the added security of the Protection Fund, investors can earn steady returns even amidst market volatility.

SEI Price Surges Following World Liberty Financial Purchase

Trending news
MoreCrypto prices
More








