J.P. Morgan Forecasts Crypto Capital Shift: Spot Bitcoin ETFs to Attract Billions from Existing Products
Jan 16, 2024
J.P. Morgan predicts that the newly approved spot bitcoin exchange-traded funds (ETFs) in the U.S. may attract significant funds from existing crypto products. While skepticism exists regarding a surge of fresh capital entering the crypto space due to these ETFs, the bank anticipates up to $36 billion inflow, with $3 billion potentially moving from Grayscale Bitcoin Trust (GBTC) and up to $20 billion from retail investors shifting from digital wallets to the new ETFs. High fees in GBTC could trigger further outflows, potentially resulting in an additional $5 billion-$10 billion exiting GBTC in favour of cheaper spot bitcoin ETFs, especially if GBTC does not lower its fees quickly.