Bitcoin Spot ETF May Not be the Game Changer for Crypto: JPMorgan
- JPMorgan managing director Panigirtzoglou said that a Bitcoin spot ETF is not a game changer for crypto.
- Nikolaos Panigirtzoglou believes that a spot ETF might improve the leading crypto’s liquidity.
- A spot ETF might also result in migration of funds from the Bitcoin futures markets.
- He said that similar ETFs in Canada and Europe have failed to attract investors’ interest.
The American multinational financial services firm headquartered in New York, JPMorgan Chase & Co., has stated that the approval of a spot Bitcoin exchange-traded fund (ETF) may not be a game changer for the crypto space, adding that it might improve the current liquidity situation of the industry. Meanwhile, the world’s largest cryptocurrency rallied to $31,000 in the past few days.
According to a report from Bloomberg, if the SEC approves a Bitcoin spot ETF, crypto investors can expect a boost in the liquidity of the leading crypto asset, stated JPMorgan managing director Nikolaos Panigirtzoglou, who is part of the banking company’s global market strategy team.
Panigirtzoglou said that if a spot Bitcoin ETF is approved in the United States by the Securities and Exchange Commission (SEC), the reaction would be similar to that of spot ETFs currently trading live in Europe and Canada. Panigirtzoglou noted that spot ETFs have overall “attracted little investor interest” in other regions in the past two years, further “failing to benefit from investor outflows from gold ETFs.”
Panigirtzoglou also noted that the approval of a Bitcoin fund might improve the liquidity of the leading crypto coin but could also lead to outflow of funds from the BTC futures contracts. Overall, the JPMorgan exec believes that hyping the approval of a spot ETF will not benefit the crypto space.
On the other hand, the CEO of BlackRock, the world’s largest asset management firm, which recently filed for a Bitcoin spot ETF, Larry Fink, said that “Bitcoin is an international asset,” while adding that “it’s not based on any one currency, and so it can represent an asset that people can play as an alternative.”
It is crucial to note that BlackRock has been successful with most of its ETFs. As per Bloomberg analysts Eric Balchunas and James Seyffart, only one of the 550 ETFs filed by the asset management firm has been rejected by the SEC. It is widely believed that the approval of a Bitcoin spot ETF is on the horizon.
Moreover, Invesco, Fidelity, WisdomTree, and ARK Invest’s filings for the approval of a Bitcoin spot ETF are also pending with the SEC.