JPMorgan Warns That a BTC ETF Approval Could Negatively Affect Bitcoin’s Price

Azeez Mustapha

Updated:

Unlock Daily Forex Signals

Select a Plan

£39

1 - month
Subscription

Select

£89

3 - month
Subscription

Select

£129

6 - month
Subscription

Select

£399

Lifetime
Subscription

Select

£50

Separate Swing Trading Group

Select

Or

Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored
Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.

Strategists at JPMorgan Chase & Co have alerted that the approval of a Bitcoin exchange-traded fund (ETF) in the US could have dire consequences on Bitcoin’s (BTC) short-term price action.

The proposed reason for the price drop is that an approved ETF could become a major competition for institutional investment for the world’s largest traded cryptocurrency fund, Grayscale’s Bitcoin Trust (GBTC).

The strategists, led by Nikolaos Panigirtzoglou, asserted that the ETF would eat at Grayscale Trust’s effective monopoly, trigger outflow of funds, and cause a drop in the net asset value. This decline will inadvertently strengthen BTC bears in the short-term.

The strategists noted that “a cascade of GBTC outflows and a collapse of its premium would likely have negative near-term implications for Bitcoin given the flow and signaling importance of GBTC.”

VanEck Associates recently filed for a Bitcoin ETF with the SEC after getting turned down from their previous effort. That said, the possibility of a BTC ETF gaining approval this time around seems very likely considering that the leadership at the SEC has been changed to a more cryptocurrency-accommodative Chairman.

Meanwhile, Grayscale recently tweeted that its assets under management have dropped by 13.7% from its record high of over $28 billion as a result of the recent bear market.

According to its latest tweet, the assets under management figure for Grayscale has declined by 13.7% from its record high of over $28 billion late last week.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 12

Bitcoin is now effectively in recovery from its recent crash to the $30k support. At press time, BTC is trading above the $35k, as it aims to climb back above its trendline. Meanwhile, the cryptocurrency is trading well within a wedge, indicating that a spike—in either direction—is just around the corner.

However, it’s most likely that the spike occurs to the upside in the coming hours or days. On the other hand, a drop to the downside should get effectively repelled by the $30k support.

Meanwhile, our key resistance levels are at $36,000, $37,827, and $39,800. While our key support levels are at $34,474, $32,000 and $30,000.

Total Market Capitalization: $940 billion

Bitcoin Market Capitalization: $640 billion

Bitcoin Dominance: 68%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *