JPMorgan: Approval of spot Bitcoin ETF may not lead to a massive influx of new capital into the crypto market

ChainCatcher news, JPMorgan stated in a research report last week that the strong rebound of digital assets over the past month was influenced by the news that a spot Bitcoin ETF may be approved. Analysts said, "The approval of a spot Bitcoin ETF will help the crypto market attract new capital, as newly approved ETFs will see inflows. Additionally, the approval will solidify a victory for the crypto industry, but it will be a setback for the U.S. Securities and Exchange Commission (SEC)," thus, the SEC is more likely to soften its stance on the cryptocurrency industry.

JPMorgan expressed skepticism about both claims. Existing funds are more likely to shift from current Bitcoin products (such as Grayscale Bitcoin Trust (GBTC), Bitcoin futures ETFs, and listed mining companies) to newly approved spot ETFs, rather than new capital entering the cryptocurrency space, noting that such ETFs already exist in Canada and Europe, but "investor interest is low."