Ethereum poised to astonish critics as its impact is underestimated
A recent report from the largest bank in America has provided insights into the potential impact of spot Bitcoin ETFs in Canada and Europe, and highlighted the anticipated interest in Ethereum due to upcoming upgrades.
According to analysts at JPMorgan, if the U.S. Securities and Exchange Commission (SEC) approves applications from 13 issuers in early 2024, spot Bitcoin ETFs may not perform as expected. The report also stated that the Bitcoin halving event has already been factored into the market and is unlikely to have any further price impact.
The predictions in the report differ from the optimistic sentiment in the crypto community, which has been hopeful of significant inflows into Bitcoin following potential approval from the SEC. JPMorgan believes that the launch of spot Bitcoin ETFs would redirect capital from existing Bitcoin-based products such as futures ETFs, mining operations, and Grayscale’s Bitcoin Trust (GBTC).
In addition, the report suggests that if GBTC converts into a spot ETF, it could result in $2.7 billion worth of sell pressure as long-term Grayscale customers look to cash in on their investments.
Sunny Lu, the CEO of VeChain, commented on the potential impact of crypto regulations, stating that they would likely have a greater effect on the markets than the Bitcoin halving. However, Lu emphasized that the decision regarding ETFs should not be underestimated.
When it comes to Ethereum, JPMorgan analysts believe that the digital currency will outperform both Bitcoin and Bitcoin ETFs in 2024. The bank supports this claim by pointing to upcoming technological upgrades that aim to reduce gas fees and improve scalability. These upgrades are part of EIP-4844, an Ethereum improvement proposal focused on proto-danksharding.
JPMorgan shared these insights well in advance of January 2024, which is when some experts believe the SEC may approve the first batch of spot Bitcoin ETFs. SEC Chairman Gary Gensler has been evasive in his responses regarding this matter, leading many to believe that approvals are just a matter of time.
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