America’s Largest Bank Predicts Performance of Bitcoin ETFs in Canada and Europe
A report from JPMorgan, America’s largest bank, suggests that the performance of spot Bitcoin ETFs in Canada and Europe can provide insights into what to expect in the U.S. The report also mentions that upcoming upgrades to Ethereum could generate more interest in ETH.
Spot Bitcoin ETFs May Have Lackluster Performance in the U.S.
JPMorgan analysts anticipate a lackluster performance from spot Bitcoin ETFs if the U.S. Securities and Exchange Commission (SEC) approves applications from 13 issuers in early 2024. They believe that the Bitcoin halving has already been priced in and will not have a significant impact on its price.
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Capital Diversion and Potential Sell Pressure
JPMorgan suggests that if spot BTC ETFs are successfully launched, capital may be diverted from existing Bitcoin-based products such as futures ETFs, mining operations, and Grayscale’s Bitcoin Trust (GBTC). Additionally, GBTC’s conversion into a spot ETF could lead to $2.7 billion worth of sell pressure as long-standing Grayscale customers cash in early.
Ethereum Expected to Outperform Bitcoin ETFs
JPMorgan analysts believe that Ethereum will outclass BTC and Bitcoin ETFs in 2024. They support this prediction by pointing to forthcoming technological upgrades aimed at reducing gas fees and increasing throughput. These upgrades are part of EIP-4844, an Ethereum improvement proposal focused on proto-danksharding.
Regulation’s Impact on the Market
Sunny Lu, CEO of VeChain, acknowledges that crypto regulations may have a greater impact on the market than Bitcoin halving. However, he emphasizes that the decision on approving an ETF for Bitcoin should not be underestimated and believes it could be a significant milestone for the crypto industry.
SEC Approval and Speculation
JPMorgan researchers shared their thoughts before January 2024, which is when some experts speculate that the SEC could approve the first batch of spot Bitcoin ETFs. The SEC chairman, Gary Gensler, has avoided answering questions on the topic, leading many to believe that approvals are only a matter of time.
Hot Take: Ethereum’s Technological Upgrades and Potential Market Dominance
JPMorgan’s report suggests that Ethereum’s upcoming technological upgrades will give it an edge over Bitcoin ETFs in 2024. By reducing gas fees and improving throughput, Ethereum is expected to recapture market share within the crypto ecosystem.
