JPMorgan analysts have argued that newly launched spot bitcoin ETFs may fail to attract substantial new investment.
Analysts alleged that they could have massive inflows of up to $36 billion through rotational capital instead. In addition, that GBTC could experience as much as $13 billion in redemptions.
“We instead believe that the amount of fresh capital entering the crypto space will likely be more of a function of regulations and in particular a function of how much room regulators will allow for the crypto ecosystem to encroach into the traditional financial system over time,” analysts suggested.
Spot bitcoin ETFs may have an outflow of up to $13 billion in GBTC due to the high fees at 1.5%.
The analysts stated that institutional investors who hold their crypto in fund format may leave futures-based ETF os and GBTC by adopting newly designed cheaper spot bitcoin ETFs if GBTC takes too long to lower its fees.
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