JPMorgan analysts have stated that the potential approval of spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) is unlikely to have a significant impact on the crypto market. They point out that spot BTC ETFs have existed in Canada and Europe without much investor interest. While spot BTC ETFs offer advantages over futures-based ETFs, such as real-time supply and demand reflection and improved liquidity, the analysts argue that these benefits are marginal. The launch of spot BTC ETFs could also shift trading activity from bitcoin futures markets. However, JPMorgan strategists believe that the SEC might approve one of the recent spot ETF applications due to the issuers’ plans to enter into surveillance-sharing agreements with Coinbase.

AI Sentiment: Negative