Asset management giants including BlackRock, Invesco, and Fidelity are racing to gain approval for a Bitcoin ETF.
However, JPMorgan strategist Nikolaos Panigirtzoglou questions whether such an approval would make a significant dent in the cryptocurrency market. Panigirtzoglou points out that similar funds have been launched in Canada and Europe, but they have failed to draw substantial investor interest.
As the US Securities and Exchange Commission (SEC) scrutinizes the onslaught of applications for spot-Bitcoin ETFs, JPMorgan's strategist casts a shadow of doubt on the potential market impact of these financial instruments.
Tomiwabold OlajideDespite the SEC's historical skepticism towards Bitcoin ETFs, primarily due to concerns about potential market manipulation, optimism has increased this year following the application by BlackRock. BlackRock, having a nearly spotless track record of gaining approval for all types of exchange-traded funds, is expected to boost confidence in the process.
Moreover, recent applications have demonstrated efforts to address regulators' worries, particularly focusing on surveillance-sharing agreements to mitigate fears over market manipulation.
BlackRock CEO Larry Fink, who recently commented on the firm's application for a spot Bitcoin ETF, emphasized the potential to 'democratize' crypto, leveling the playing field for investors.
Whether or not the SEC greenlights these applications and what impact they will have on the cryptocurrency landscape remains to be seen.
Godfrey Benjamin
Gamza Khanzadaev
Vladislav Sopov
Dan Burgin