2023-10-23 09:52:31 ET
Analysts at %JPMorganChase () say that a %Bitcoin () exchange-traded fund (ETF) is likely to be approved in the U.S. before Jan. 10, 2024.
JPMorgan, the world’s largest bank with more than $3 trillion U.S. of assets under management, says in a research report that the U.S. Securities and Exchange Commission (SEC) is likely to greenlight Bitcoin ETFs before Jan. 10, which is the deadline for a decision on an application made by Ark Invest.
JPMorgan cites the recent decision by the SEC not to appeal a court ruling that allows Grayscale to convert its Bitcoin Trust (GBTC) into an ETF as evidence that the regulator plans to approve cryptocurrency exchange-traded funds.
ETFs are traded on an exchange like a stock and track the performance of an underlying asset. They are popular because they allow investors to gain access to cryptocurrencies without having to purchase the underlying digital assets.
ETFs are also cheaper to buy and trade than physical Bitcoin and other digital assets.
The cryptocurrency market anticipates that the approval of a spot Bitcoin ETF will lead to a flood of money into the sector. One analyst recently forecast that ETFs could add $1 trillion U.S. to Bitcoin’s market capitalization.
JPMorgan says that the SEC is likely to approve multiple Bitcoin ETF applications at the same time, possibly by year’s end.
The price of Bitcoin is now back above $30,000 U.S., having risen 85% year to date.