A large amount of funds will flow into Bitcoin ETFs from existing crypto asset products: JP Morgan | CoinDesk JAPAN

JPMorgan (JPMorgan) said in a research report on January 11 that it is unclear how much new capital the new Spot Bitcoin (BTC) exchange-traded fund (ETF) will attract, but it will attract other crypto assets. He said he expects a large amount of money to flow in from products.

Market reaction to the U.S. Securities and Exchange Commission (SEC) expressing concern over the approval of spot Bitcoin ETFs has been relatively muted, with the focus now shifting to how much capital these new ETFs will attract. says the report.

Analysts led by Nikolaos Panigirtzoglou said: “Many market participants share the belief that a lot of new capital will enter the crypto space as a result of the Bitcoin spot ETF approval. I’m skeptical of optimism.”

Still, JPMorgan expects significant inflows from existing crypto products into newly created ETFs, and even if no new capital enters the crypto market, the new ETFs will have up to 36 billion yen There is a possibility that there will be an inflow of US dollars (approx. 5.22 trillion yen, equivalent to 1 dollar = 145 yen).

JP Morgan says investors who bought the undervalued Grayscale Bitcoin Trust (GBTC) last year took profits, draining about $3 billion from GBTC and moving it into a new spot ETF. It is said that there is a possibility of doing so. It is also estimated that individual investors will transfer up to $20 billion (approximately 2.9 trillion yen) from digital wallets on crypto asset exchanges to new ETFs.

Grayscale’s high fees could also trigger capital outflows, and unless rates are lowered to the levels set by BlackRock and other providers, it will require “more capital, perhaps another $5 billion to $100 billion.” “$725 billion to 1.45 trillion yen could flow out of GBTC relatively quickly and into spot Bitcoin ETFs with lower fees,” the bank added.

Institutional investors who hold crypto assets in fund formats such as futures-based ETFs and GBTC report that they are likely to move to spot ETFs with lower fees, especially if GBTC fee reductions are delayed. It is written in the book.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Shutterstock
｜Original text: JPMorgan Sees Significant Capital From Existing Crypto Products Pouring Into New Spot Bitcoin ETFs