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