• The recent JP Morgan report looks to play down the effect that the approval of a Spot Bitcoin ETF might bring to the crypto sector.
• It was announced that Blackrock, the world’s biggest asset manager, had filed for a Spot Bitcoin ETF causing hope and optimism in the crypto market.
• JP Morgan’s view is that a Spot Bitcoin ETF is unlikely to be a game-changer and has only “marginal” benefits over a Futures ETF.
Blackrock Files for Spot Bitcoin ETF
A recent announcement by Blackrock, the world’s largest asset manager, that it had filed for a Spot Bitcoin ETF caused significant hype and optimism in the crypto market. This news sparked speculation that this could be the spark which ignites another bull run for cryptocurrencies.
JP Morgan Report Plays Down Effect of Spot BTC ETF
In response to this development, JP Morgan released a report on Thursday looking to play down the potential effect of such an event on crypto markets. The report suggests that spot bitcoin ETFs already exist in Canada and Europe yet have not gained significant investor attention, and states that there may only be marginal benefits compared to futures based investments.
Advantages of Spot BTC ETF
The report does outline some advantages of having spot bitcoin investment vehicles available: it allows retail investors easier access than with futures based products; more liquidity than direct investment into BTC; as well as allowing institutions more exposure to BTC without requiring them to purchase or store actual tokens themselves.
JP Morgan And Pro-Crypto Sentiment
Despite these potential advantages, JP Morgan appears committed against any pro-crypto sentiment which might encourage people away from traditional banking services towards digital assets such as bitcoin. This position goes directly against comments made by its own CEO Jamie Dimon who has described bitcoin as his “pet rock”, despite being aware of its potential advantages going forward.
Ultimately it remains unclear whether or not Blackrock’s filing will result in an increase in interest from mainstream investors, but given its size and prominence it is likely that whatever decision is reached will have major implications for both traditional banking and cryptocurrency markets alike.