Cryptocurrencies
JPMorgan Strategists Say U.S. ETF Could Sap Bitcoin Price
- Strategists mull implications if Bitcoin ETF gets green light
- They say such a fund could impact the linchpin Grayscale trust
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U.S. approval of a Bitcoin exchange-traded fund could weigh on the digital coin’s price in the short term, according to JPMorgan Chase & Co.
That’s because competition from such a vehicle could spark outflows from the Grayscale Bitcoin Trust, the world’s largest traded cryptocurrency fund. The ETF would erode the Grayscale trust’s effective monopoly, sparking outflows and a slide in its premium to net asset value -- which in turn could hurt Bitcoin’s price, strategists led by Nikolaos Panigirtzoglou wrote in a note.