BTC 5.20%
$65,775.31
ETH 7.25%
$2,629.20
SOL 7.14%
$155.93
PEPE 11.66%
$0.000010
SHIB 5.86%
$0.000018
BNB 3.64%
$590.06
DOGE 4.75%
$0.11
XRP 3.72%
$0.54
Margex
Easy Crypto Trading

JP Morgan: Bitcoin ETFs Could See $25 Billion Inflows From Existing Products Without Fresh Capital

Bitcoin JPMorgan spot Bitcoin ETF
Last updated:
Author
Author
David Pokima
About Author

David is a finance journalist and a contributor to Cryptonews.com with a keen interest in breaking comprehensive, accurate, and reliable blockchain news.

Last updated:
Why Trust Cryptonews
With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews
Source: AdobeStock / Alexey Novikov

Banking giant JP Morgan projects a huge inflow into spot Bitcoin ETFs from other cryptocurrency-related products even without new capital from the wider financial market.

JP Morgan Market Trends Report Highlights Inflows Following Bitcoin ETF Approval

In a recent report, the bank highlighted market trends following the approval of spot BTC ETFs by the United States Securities and Exchange Commission (SEC). It projected potential high levels of capital inflow for spot Bitcoin ETFs in the coming months.

After the approval, Bitcoins traded sideways for some time before marking a slight correction, leading to diverse predictions from market analysts on the growth of the market and the influence of the spot ETF on other jurisdictions.

The report explained that it would be hard to project the capital inflow the ETF can attract. Still, even without fresh investments from the wider financial market, existing cryptocurrency products will see at least $36 billion moving to spot BTC ETFs for several reasons.

While most analysts projected skyrocketing figures for Bitcoin and the entire digital assets market on the back of a spot BTC ETF approval, the bank expressed a degree of skepticism about the expected inflows.

“We are skeptical of the optimism shared by many market participants at the moment that a lot of fresh capital will enter the crypto space as a result of the spot bitcoin ETF approval.”

Firms back spot Bitcoin ETFs

In recent times, several cryptocurrency firms and bulls have predicted an uphill run as a new investment window opens for Bitcoin, sending the asset price to highs not seen in months.

Matrixport projected a large investment flow to the market and a bullish crypto price above $50,000. At the same time, MicroStategy’s Michael Saylor described it as a new window, adding that it may be the biggest thing on Wall Street in three decades.

Notably, the price of digital assets, particularly Bitcoin, has been on a steady rise since BlackRock’s ETF application. Gaining over 158% last year in anticipation of approval, the asset’s price pushed miners out of the doldrums ahead of the next halving and rallied bulls.

JP Morgan’s predictions come as other crypto products have recorded massive gains in the last 12 months. This will potentially lead to funds trickling into the ETF. The bank estimates $20 billion inflows from retail investors to ETFs, while $5 billion to $10 billion could leave the Grayscale Bitcoin Trust (GBTC).

Nikolaos Panigirtzoglou and other analysts at the firm wrote that Grayscale’s fees could occasion the inflows except the firm reduces its fees to rival BlackRock.

Furthermore, investors may opt to take profits after purchasing discounted GBTC shares. a lot more capital, perhaps an additional $5 billion-$10 billion could exit GBTC relatively quickly to migrate towards cheaper spot bitcoin ETFs.”

More Articles

Blockchain News
Boerse Stuttgart Partners with Amazon to Enhance Crypto Offering Capabilities in Europe
Jimmy Aki
Jimmy Aki
2024-10-14 17:48:22
Industry Talk
Best Crypto to Buy Now October 14 – Bitcoin, Worldcoin, Ethena
Joel Frank
Joel Frank
2024-10-14 17:15:35