JPMorgan ETF approval may boost Bitcoin liquidity, but won’t be a game changer.

According to a report by JPMorgan managing director Nikolaos Panigirtzoglou, the potential approval of a Bitcoin exchange-traded fund (ETF) is unlikely to have a significant impact on crypto markets. However, it could benefit Bitcoin, the leading cryptocurrency. Panigirtzoglou, based in London, is part of JPMorgan’s global market strategy team. He believes that a Bitcoin ETF in the United States would have a similar effect as those seen in Canada and Europe, where spot Bitcoin ETFs have been available for some time.

The report, seen by Bloomberg, states that Bitcoin ETFs have generally attracted little investor interest in other jurisdictions over the past two years and have failed to benefit from investor outflows from gold ETFs.

The strategist also recognizes the advantages of a Bitcoin fund receiving approval in America. According to Panigirtzoglou, approval could bring more liquidity to Bitcoin markets but may also result in a shift of trading activity from BTC futures products.

Panigirtzoglou’s perspective diverges from the high expectations surrounding the approval of a Bitcoin ETF in the United States. During an interview on July 6, BlackRock’s CEO, Larry Fink, suggested that investors could turn to Bitcoin as a hedge against inflation and the devaluation of fiat currencies.

“Let’s be clear: Bitcoin is an international asset,” said Fink, adding, “It’s not based on any one currency, and so it can represent an asset that people can use as an alternative.” The Labor Department reported an annual inflation rate of 4.0% for the U.S. for the 12 months ending in May.

#Bitcoin is an International Asset. – Larry Fink, BlackRock CEO pic.twitter.com/WIVKITXYPj

— Michael Saylor⚡️ (@saylor) July 5, 2023

BlackRock’s success in filling ETFs has generated optimism that its attempt to launch a Bitcoin ETF could also be successful. According to data from Eric Balchunas and James Seyffart at Bloomberg Intelligence, only one out of 550 funds filed by the company has been rejected to date.

Following BlackRock’s application, other companies such as Invesco, Fidelity, WisdomTree, and ARK Invest have also filed for regulatory approval. However, the SEC has denied several applications in the past.

Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises