JP Morgan analysts said that Wall Street may get a long-awaited Bitcoin exchange-traded fund (ETF) within months. In a Wednesday report, the top investment bank said it was “most likely” that a spot Bitcoin ETF could get approved before January 10. Analysts at Bloomberg Intelligence added said that there is a 90% chance a Bitcoin ETF will get approved in January.
An ETF is an investment vehicle that tracks the value of an underlying asset, like gold, foreign currencies, or in this case, crypto. A spot Bitcoin doesn’t yet exist in the States but would give investors exposure to cryptocurrency in a safe and easy way.
But the SEC has approved several Bitcoin futures ETFs, like Proshares’ Bitcoin Strategy ETF. There was huge interest in the products when they first launched, during a bull market, but since then, the interest in crypto futures ETFs has waned . Case in point: The ProShares fund, the first to win approval, trades on the NYSE Arca under the BITO ticker. It accumulated more than $1 billion in investment in its first two days, but hasn’t grown beyond the initial rush. It now has $902 million worth of assets under management.
Investors are hungry for a spot Bitcoin ETF, experts say, but the U.S. Securities and Exchange Commission has denied applications for such a product, mostly citing the potential for market manipulation as one of the main reasons.
Now, though, analysts are more optimistic than ever before: BlackRock, world’s biggest fund manager, applied for a Bitcoin ETF of its own and fund manager Grayscale scored a victory against the SEC where a federal judge sided with the firm over its application to convert its flagship Bitcoin fund into an ETF. The SEC currently has a long-list of applications sitting on its desk to review from major Wall Street players, including VanEck, WisdomTree, and ARK Invest.
It looks like Wall Street may get a Bitcoin exchange-traded fund (ETF) soon, with analysts stating that there is a 90% chance a Bitcoin ETF could get approved before January 10. This ETF would track the value of the underlying asset, Bitcoin, and give investors exposure to cryptocurrency in a safe and easy way. However, the SEC has previously denied applications for such a product due to potential market manipulation. But now, with major Wall Street players applying for a Bitcoin ETF, the chances of getting approval seem high.
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You can read more about this topic here: Decrypt: Bitcoin ETF Could Be Approved in Time for Christmas, Says JP Morgan
