• JP Morgan released a report to play down the effect that a Spot Bitcoin ETF might have on the crypto sector.
• The market was thrown into a frenzy of hope and optimism when it was announced that Blackrock had filed for a Spot Bitcoin ETF.
• The JP Morgan report argued that the Blackrock ETF “is unlikely to be a game changer for crypto markets”.
JP Morgan Report Plays Down Effect of Spot Bitcoin ETF
Blackrock Filing Causes Market Frenzy
The whole crypto market was thrown into a frenzy of hope and optimism when it was announced that the biggest asset manager in the world (Blackrock) had filed for a Spot Bitcoin ETF. There is no bigger player than Blackrock, and add to this the pro-crypto and bitcoin comments made by its CEO Larry Fink on national TV, and you have the perfect narrative to help the crypto market explode higher.
JP Morgan Seeks Damage Limitation
A recent report by JP Morgan looks to play down the effect that the approval of a Spot Bitcoin ETF might bring to the crypto sector. Should institutions and retail investors get the message that bitcoin is worth investing in, then buying activity could potentially become an avalanche. The line taken by strategists in their report is that this kind of investment vehicle “is unlikely to be a game changer for crypto markets”. They argue that Spot Bitcoin ETFs already exist in Canada and Europe, yet have not gained significant investor interest, as well as only having “marginal” benefits over Futures ETFs when compared together.
Potential Advantage of Spot over Futures?
Some advantages were laid out for having a Spot rather than Futures ETF, mainly being that it could potentially take liquidity away from existing Futures products – which are more geared towards institutional use rather than retail investors anyway.
JP Morgan Sees Writing on Wall?
Even as JP Morgan tries to influence markets against any activity which would promote further buying into bitcoin products, they must surely be seeing the writing on the wall with regards to its potential success – especially given CEO Jamie Dimon’s „pet rock“ references which are now becoming embarrassing for him. It remains clear however that JP Morgan will look to make money off of these developments should they happen; they just don’t want too much attention drawn towards them at this stage!