JPMorgan has expressed skepticism regarding the recent robust rally in digital assets.
JPMorgan has expressed skepticism regarding the recent robust rally in digital assets, primarily driven by enthusiasm surrounding the potential approval of spot Bitcoin exchange-traded funds (ETFs).
In a research report, the bank noted that the bullish sentiment revolves around the belief that approval of spot bitcoin ETFs would attract new capital and signify a victory for the crypto industry against the Securities and Exchange Commission (SEC). However, JPMorgan argues that it's more likely existing capital will shift from current bitcoin products to the newly approved spot ETFs, citing limited interest in similar ETFs in Canada and Europe.
The bank also emphasized recent court rulings involving Ripple and Grayscale, stating that while they represent legal defeats for the SEC, regulatory scrutiny in the crypto industry may not significantly ease. Pending U.S. crypto industry regulations and the recent FTX fraud case contribute to the cautious outlook.
Additionally, JPMorgan dismissed the bullish tailwind of the upcoming Bitcoin halving in April next year, deeming the argument "unconvincing" as the effects of the halving are unpredictable and already priced in.
Let us know what you loved about this article, what could be improved, or share any other feedback by filling out this short form.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
