BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

JPMorgan Predicts $36B in Spot Bitcoin ETF Inflows, But There is a Catch

by BlockNews.com Team
January 11, 2024
in CRYPTO
Reading Time: 2 mins read
A A
2
SHARES
40
VIEWS
Share on XShare in TelegramShare on Reddit
  • The SEC’s approval of spot bitcoin ETFs may see $3-13 billion inflows from existing crypto products like GBTC and futures ETFs, but is unlikely to attract significant fresh capital from outside crypto
  • GBTC may face $13 billion in outflows given its higher fees compared to the new spot ETFs, potentially losing assets and liquidity advantages if it does not lower fees
  • Retail investors prefer the spot ETFs for lower fees while institutions may shift from GBTC and futures ETFs, but overall the spot ETFs may not spur major new crypto investments

The Securities and Exchange Commission recently approved several spot bitcoin exchange-traded funds (ETFs), marking a historic move. However, JPMorgan analysts believe these new ETFs may not draw significant fresh capital inflows.

Inflows Projected from Existing Crypto Products

The analysts estimate around $3 billion could come from existing bitcoin futures-based ETFs. Grayscale’s Bitcoin Trust (GBTC) could see $3-13 billion exit into the new spot ETFs. Additionally, $15-20 billion may transition from retail crypto exchange accounts and wallets into the spot ETFs.

However, the analysts remain skeptical that the spot ETFs will attract large new investments into crypto from outside the ecosystem. They believe crypto adoption will depend more on future regulations allowing crypto to integrate with traditional finance.

JUST IN: JPMorgan predicts Spot #Bitcoin ETFs will see $36B in inflows from existing instruments

NOT from new capital entering the market pic.twitter.com/nUn9whWGKI

— BlockNews.com (@blocknewsdotcom) January 11, 2024

Potential Outflows from Grayscale’s Bitcoin Trust

Given its high fees compared to the spot ETFs, GBTC may see up to $13 billion in outflows. Speculators may take profits after buying discounted GBTC shares anticipating elimination of the discount upon conversion.

If GBTC does not lower its fees to compete, it could lose assets and liquidity advantages from being the largest bitcoin fund. This may induce further outflows from institutional investors.

Retail Versus Institutional Preferences

Overall, retail investors likely favor the new spot ETFs for their lower fees and accessibility. Institutional investors may shift from futures ETFs and GBTC into the cheaper spot ETFs if GBTC does not reduce fees.

Tags: BitcoinBitcoin ETFcryptoETFJPMorgan
Tweet1ShareShare
Previous Post

Robinhood to List the Spot Bitcoin ETFs “ASAP”

Next Post

Spot Bitcoin ETF Smashes ETF Records With $4.5 Billion in Day One Trading

DON'T MISS THESE! HOT OFF THE PRESS

Toncoin and Telegram: The Sleeping Giant of 2025?
BITCOIN

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL
BITCOIN

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules
CRYPTO

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Connecticut Bans Bitcoin and Crypto for Government Funds
BITCOIN

Connecticut Bans Bitcoin and Crypto for Government Funds

July 1, 2025
Shiba Inu: Turning $3,000 into $10,000 – The Math Behind the Meme
CRYPTO

Shiba Inu: Turning $3,000 into $10,000 – The Math Behind the Meme

July 1, 2025
FARTCOIN Surges 148%—Is the Meme Just the Beginning?
CRYPTO

FARTCOIN Surges 148%—Is the Meme Just the Beginning?

July 1, 2025
Load More

Related News

Toncoin and Telegram: The Sleeping Giant of 2025?

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Donald Trump Threatens Elon Musk with DOGE Audit

Donald Trump Threatens Elon Musk with DOGE Audit

July 1, 2025
Jerome Powell Says July May be Too Early for Rate Cuts, But Doesn’t Rule it Out

Jerome Powell Says July May be Too Early for Rate Cuts, But Doesn’t Rule it Out

July 1, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.