JPMorgan Chase analysts said that the US Securities and Exchange Commission (SEC) approved Bitcoin exchange-traded funds (ETFs) that may be bad for Bitcoin in the short term. Analysts said that people are optimistic about the prospects of a Bitcoin ETF approved by the US Securities and Exchange Commission under the new leadership.
SEC approval of Bitcoin ETF may be denied
JP Morgan released a report on Friday discussing the impact of the SEC-approved Bitcoin ETF on the Bitcoin market. The analyst wrote: “People are optimistic about the prospects for the US Securities and Exchange Commission to approve the US Bitcoin ETF this year, because people are looking forward to changes in the leadership of the US Securities and Exchange Commission.”
The approval of Bitcoin ETFs in the United States this year may be bad for Bitcoin in the short term.
Analysts, including strategist Nikolaos Panigirtzoglou (Nikolaos Panigirtzoglou), continue to explain why they predict a negative outlook. “The reason is that the premium of Grayscale Bitcoin Trust (GBTC) relative to the net asset value may fall [net asset value] This is resolved by launching a Bitcoin ETF in the United States, which will dissolve most of the GBTC investment currently used to monetize the premium. “
They elaborated: “Some institutional investors may subscribe for GBTC (based on net asset value) in the second half of last year and intend to sell it after the 6 million unlocking period… As the 6 million unlocking period expires, some of these institutional investors may GBTC will be sold in the second half of 2011. The premium will be monetized in the first half of 2021. If achieved, this selling pressure will put downward pressure on the GBTC premium.”
JPMorgan Chase analysts emphasized that Bitcoin ETFs will provide institutional investors with alternative investment tools to GBTC and came to the following conclusions:
Given the importance of GBTC’s traffic and signals, a series of outflows and premium collapses of GBTC may have a negative near-term impact on Bitcoin.
Nevertheless, JPMorgan Chase analysts acknowledged in the report that in the long run, the U.S. approval of Bitcoin ETFs is beneficial to Bitcoin.
Many people on Twitter disagree with the assessment of JP Morgan analysts that the Bitcoin ETF approved by the US Securities and Exchange Commission (SEC) is not good for the entire industry. Vaneck’s director of digital asset strategy, Gabor Gurbacs, said on Twitter: “Institutions need Bitcoin ETFs.” His company recently submitted a proposal for Bitcoin ETFs to the US Securities and Exchange Commission (SEC).
Gurbacs believes: “I believe that Bitcoin ETFs may bring many structural benefits to Bitcoin and traditional financial markets.” Contrary to the views of JPMorgan Chase analysts, Director Vaneck wrote: “The approval of Bitcoin ETFs is in the short and long term. It is good for Bitcoin.”
Do you think that the US Securities and Exchange Commission approved Bitcoin ETF this year to benefit Bitcoin? Let us know in the comments section below.
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