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A report from America's largest bank said bitcoin ETF spot flows in Canada and Europe hint at what to expect in the US, adding that upcoming ethereum upgrades draw more interest in eth.
Analysts at JPMorgan predict lackluster performance for bitcoin spot ETFs if the U.S. Securities and Exchange Commission (SEC) approves applications from about 13 issuers in early 2024. Additionally, the halving of bitcoin (btc) is already discounted and will likely have no additional price. impact, according to Chase Bank.
The report prediction crypto/2023/12/14/jpmorgan-ethereum-ether-bitcoin-etf-hype/” target=”_blank” rel=”noreferrer noopener”>pivoted of general crypto-native sentiment, which has embraced bullish commentary amid hopes of billion-dollar inflows into btc following possible SEC go-ahead.
Instead, JPMorgan opined that the successful launch of spot btc ETFs would divert capital from existing bitcoin-based products such as futures ETFs, mining operations, and Grayscale's bitcoin Trust (GBTC).
The heavyweight bank also said converting GBTC into a spot ETF could induce selling pressure worth $2.7 billion from a long-time Grayscale client looking to cash in early on its faith in the company.
VeChain CEO Sunny Lu said crypto regulations would likely impact markets more than the btc halving. However, Lu argued that the ETF's decision should not be underestimated.
The impact that regulation is having on the market is becoming more significant than the impact of the bitcoin halving. The attention of the entire crypto market is on the progress of the ETF for bitcoin Spot, which I believe may be the biggest milestone in the history of bitcoin and cryptocurrencies.
Sunny Lu, CEO of VeChain
ethereum will outperform bitcoin ETFs
Regarding ethereum (eth), the second largest asset in cryptocurrencies and blockchain, JPMorgan analysts believe that the digital currency will surpass btc and bitcoin ETFs in 2024. The bank supported this claim citing upcoming technological upgrades to reduce gas rates and increase performance.
The updates are part of EIP-4844, an ethereum improvement proposal focused on proto-danksharding.
We believe that next year ethereum will reassert itself and regain market share within the crypto ecosystem.
JPMorgan analysts
JPMorgan researchers shared these thoughts weeks before January 2024, when some believe the SEC could approve the first batch of spot bitcoin ETFs. SEC Chairman Gary Gensler recently avoided answering questions on the topic, while experts surmised that approvals are a matter of when, not if.
