Will a Bitcoin ETF Approval be a Game Changer for Crypto Markets?
JPMorgan managing director Nikolaos Panigirtzoglou believes that while a spot Bitcoin exchange-traded fund (ETF) approval in the United States won’t be a game changer for crypto markets, it could benefit the leading cryptocurrency. According to Panigirtzoglou, Bitcoin ETFs in other jurisdictions have attracted little investor interest in the past two years and have failed to benefit from investor outflows from gold ETFs.
Main Points:
- Bitcoin ETFs in other jurisdictions have not attracted much investor interest.
- An approval of a Bitcoin ETF in the US could bring more liquidity to Bitcoin markets.
- Approval could lead to a migration of trading activity from BTC futures products.
- BlackRock’s CEO, Larry Fink, sees Bitcoin as an international asset that can serve as an alternative investment.
- BlackRock’s success in filling ETFs has led to optimism for its Bitcoin ETF application.
BlackRock’s consistent success in filling ETFs has led to optimism that its Bitcoin ETF application might also succeed. The company has a track record of having only one out of 550 funds rejected to date. Other proponents, including Investco, Fidelity, WisdomTree, and Ark Invest, have also filed for regulatory approval with the SEC. While several applications have been denied in the past, there is hope for a successful Bitcoin ETF approval in the future.
Hot Take:
While a Bitcoin ETF approval in the US may not have a significant impact on crypto markets, it could provide more liquidity to Bitcoin and attract new investors. However, the success of Bitcoin ETFs in other jurisdictions and the positive sentiment surrounding BlackRock’s application suggest that an approval in the US is a possibility. This could potentially open up new opportunities for investors and further legitimize Bitcoin as an alternative investment.
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