JP Morgan Cautions of Dropping BTC Price with BTC ETF Support in US
Jan 12, 2021 06:54 UTC
Jan 12, 2021 at 06:54 UTC
JP Morgan’s forecasters saw that the U.S. Securities & Exchange Commission sympathetic a BTC exchange-traded fund is probable negative for BTC in the close term. There is hopefulness around the view of the SEC appreciative a BTC ETF under novel leadership, the forecasters say.
SEC Favorable BTC ETF Might Be Negative
JP Morgan available a report on Friday that discourses the influence of an SEC accepted BTC ETF on the BTC market. ‘Optimism around the view of the SEC approving a BTC ETF in the US this year has risen in expectation of SEC leadership changes,’ the forecasters inscribed, stating:
The endorsement of a BTC ETF in the US this year would probably be negative for BTC in the close term.
The forecasters, with strategist Nikolaos Panigirtzoglou, continued to clarify why they are predicting a negative viewpoint. ‘The reason is a possible decline in the GBTC premium to NAV from the outline of BTC ETF in the US, which would unwind a big helping of GBTC investments now placed for monetizing this premium’
They expounded that ‘Some institutional investors probable subscribed to GBTC (at NAV) during the 2ND half of last year with the purpose of selling after the 6m unlock period … As the 6m unlocked period finishes, some of these institutional investors strength sell GBTC during the first half of 2021 to monetize the premium. If it appears, this selling pressure would put descending pressure on GBTC premiums’
Highlighting that a BTC ETF would offer an investment vehicle to GBTC for institutional investors, the JP Morgan forecasters decided:
A cascade of GBTC outflows & a failure of its premium would probably have negative near-term insinuations for BTC given the flow & gesturing significance of GBTC.
However, JP Morgan’s forecasters admitted in their report that the endorsement of a BTC ETF in the U.S. would be positive for BTC ended the long period.
Numerous people on Twitter disagree with the valuation by JP Morgan’s forecasters that an SEC accepted BTC ETF would be bad for the industry at all. Vaneck’s director of digital assets plan, Gabor Gurbacs, tweeted that ‘Institutions want a BTC ETH’ His Company lately filed a suggestion with the SEC for a BTC ETF.
Gurbacs harangued: ‘I trust that a BTC ETF may carry many structural welfares to the BTC as well as traditional financial markets’ Contrasting JP Morgan forecasters’ opinion, the Vaneck director inscribed, ‘The support of a BTC ETF would be positive for BTC in the close as well as long term’
Do you consider the SEC positive a BTC ETF this year is good for bitcoin? Let us tell in the commentaries section below.
Published at Tue, 12 Jan 2021 06:54:09 +0000