Express
U.S. ETF Could Sap Bitcoin Price
Summary: 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. The competition from ETF 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 ...
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. The competition from ETF 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. Some commentators view approval of a Bitcoin ETF in the U.S. as more likely with changing leadership at the Securities and Exchange Commission. The JPMorgan strategists said introduction of a Bitcoin ETF should be positive for the cryptocurrency in the longer term.
