JPMorgan Report Doubts about Bitcoin ETF Effects on Bitcoin
JPMorgan questions the recent bitcoin rally, skeptical of U.S. ETF impact and looser SEC rules.
Bitcoin's price has jumped because people think the U.S. might approve bitcoin exchange-traded funds (ETFs), but JPMorgan doubts this rise.
The bank heard two big reasons for excitement: approval of bitcoin ETFs could bring new money into crypto, and it might make the SEC more relaxed towards crypto. But, JPMorgan isn't convinced and thinks money will just shift from old bitcoin investments to new ETFs.
ETFs in Canada and Europe didn't attract much interest, so JPMorgan questions if U.S. ETFs will be different. They also say legal losses for the SEC won't necessarily make crypto rules looser.
With the recent FTX scandal, the bank does not expect U.S. lawmakers to change their strict approach to crypto. Lastly, the bank finds the upcoming bitcoin halving an uncertain boost for the crypto market, as its impact is already expected.
