BTC and altcoins have had an eventful week as optimism continues regarding the SEC's approval of spot Bitcoin ETFs.
As BTC approached $38,000 last week, a new report came from JP Morgan.
At this point, JP Morgan stated that the excitement about the potential approval of the spot Bitcoin ETF triggered a strong rally last October and said that the potential approval of the spot ETF and the rally were over-exaggerated.
According to Coindesk, JP Morgan analysts led by Nikolaos Panigirtzoglou stated that Bitcoin and the upward trend in the market are supported by two main arguments:
“Spot Bitcoin ETF approval will help crypto markets attract fresh capital as newly approved ETFs see inflows.
A potential approval would be a win for the cryptocurrency industry and a defeat for the SEC.
This raises the possibility that the SEC's approach towards the cryptocurrency industry will soften.
We are skeptical of these options. Because in our opinion, instead of new capital inflow to the cryptocurrency sector, it is more likely that the existing capital will go to Grayscale Bitcoin Trust (GBTC) and Bitcoin futures ETFs.
“Because spot ETFs are already available in Canada and Europe, they have received little interest from investors since their launch.”
Referring to regulatory efforts in the United States, analysts said that although the Ripple and Grayscale decisions of the courts represent legal defeats for the SEC, the United States is still waiting for crypto industry regulations.
According to JP Morgan, US lawmakers will not change their attitude towards the crypto industry and regulation efforts due to the adverse decisions in the Ripple and Grayscale case.
Finally, touching on the halving event in 2024, analysts said, “Although the halving is shown as another upward catalyst for the BTC price, the halving argument does not seem very convincing for the rise, since the effect of the halving is unpredictable and has already been priced.” said.
*This is not investment advice.
