JPMorgan analysts said in the new report that ETF filings may not be game changers contrary to expectations. ARK Investments, on the other hand, offers a more positive outlook for Bitcoin, which has gained institutional confidence.
JPMorgan says Bitcoin ETF moves won’t be effective
A report by JPMorgan on Thursday suggested that a Bitcoin exchange-traded fund (ETF) would not be game-changing for the crypto market. In recent weeks, BlackRock, Wisdom Tree, Invesco, and Fidelity Investments have applied for a Bitcoin spot ETF. The SEC has not allowed applications so far. But observers still await its final acceptance. cryptocoin.com The Santiment report, which we have quoted as , showed that the applications in June had an impact on the market.
However, analysts led by JPMorgan Managing Director Nikolaos Panigirtzoglou wrote that spot Bitcoin ETFs have been around for some time in Canada and Europe. Experts noted that the ETF did not attract a significant amount of investor interest. However, historical data show the opposite.
As reported in a Business Insider article in 2012, analysts at Oppenheimer Asset Management explained how the launch of a gold ETF in November 2004 caused a significant increase in the precious metal’s value.
John Stoltzfus and Matthew Naidorf believe that the launch of the US-traded gold ETF (GLD) on November 18, 2004 will play a decisive role in its performance over the next eight years. Pre-ETF gold prices rose 16.84% in eight years. Ten-year interest rates decreased by 33.55%. In the eight years since the ETF began trading, gold prices are 286%. 90 percent, while ten-year rates fell 61.65%.
Ark Invest Report reveals a more positive outlook
While JPMorgan analysts predicted that ETF news would be ineffective, increased institutional interest was noted on the part of Ark Invest. In a new report, the company highlighted that BTC has outstripped nearly all traditional assets in the first half of 2023. Accordingly, Bitcoin gained more than 80% against the US dollar with its outstanding performance.
The report highlights the recent surge in institutional interest following the Blackrock spot Bitcoin exchange-traded fund (ETF) application. Ark’s researchers further explain that “the BTC balance of OTCs, a proxy for corporate activity, has reached a one-year high.”
The report suggests that the GBTC increase in Grayscale’s value indicates a potential shift in sentiment. Ark notes that “increasing balances at OTC desks indicate that institutions and other major capital distributors are increasingly focusing on Bitcoin.”
Bitcoin’s investor base is getting stronger, according to report
“About 70% of the 19.4 million Bitcoins in circulation have not moved for at least a year,” the researchers wrote. This confirms a stronger owner base,” he explains. Also touching on macroeconomic events, the report states that bullish signs for Bitcoin appear in the tightening cycle.
For example, Ark’s report says the contraction in new manufacturing orders signals an impending recession. Despite the macroeconomic uncertainty, BTC performed strongly as highlighted in Ark’s report. In the process, “finding strong technical support in its 200-week moving average, it closed the month over 14%.”
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