Bitcoin Spot ETF Approval is Not a Bullish Case for Crypto: JPMorgan

JPMorgan claims that Bitcoin-related investment vehicles have generated low interest among investors and a spot ETF would be no different.

According to recent articles, JPMorgan, a leading global financial services firm, stated that potential SEC authorization for a spot bitcoin exchange-traded fund (ETF) would not be a major breakthrough for the crypto market due to a number of reasons. 

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SEC Might Approve Spot BTC ETF Soon

In accordance with a research released on Thursday, the SEC has not yet authorized these Bitcoin spot ETFs despite receiving multiple applications. However there has recently been greater anticipation that the watchdog would allow one since some of the earlier objections are presumed to have been resolved through more recent filings. 

JPMorgan Claims BTC Funds have Attracted Low Interest

The report said: “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.”

Spot ETFs provide an easier, more direct and safe approach to obtain a stake in bitcoin by avoiding certain difficulties connected with direct custody and transfer of BTC as well as the core risk related to futures-based products. 

More Liquidity and Transparency in Bitcoin Market

The report reads: “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.

A number of researchers have recently predicted about the registrations of spot Bitcoin Exchange Traded Funds and their authorization by the SEC. 

BlackRock is Pushing for Bitcoin Spot ETF

It all started when Bloomberg senior Exchange Traded Fund (ETF) analyst Eric Balchunas claimed at the end of last month that BlackRock had a fifty percent chance of getting SEC approval for a spot Bitcoin (BTC) ETF. 

It is worth noting that BlackRock, in partnership with American cryptocurrency exchange Coinbase, filed a petition with the US Securities and Exchange Commission (SEC) in June for a spot Bitcoin Exchange Traded Fund. In addition, a “surveillance-sharing agreement” between Coinbase and BlackRock was disclosed in a revised filing.

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