Bitcoin (BTC USD) news and quotes: Approval of ETF may affect cryptocurrency


According to JPMorgan Chase & Co., US approval of a bitcoin exchange-traded fund can be weighed on the value of digital coins in the short term.

This is because such a vehicle can spark off competition Grayscale Bitcoin Trust is the world’s largest traded cryptocurrency fund. The ETF ended the effective monopoly of the Grayscale Trust, a premium to net asset value and a sparking in its premium – that could hurt the price of bitcoin, strategists led by Nicolos Panigiratzogou wrote in a note.

On Friday, he said, “A windfall of GBTC and the fall of its premium will likely have negative near-term effects for bitcoin.”

Some commentators see the approval of bitcoin ETFs in the US as more likely with the changing leadership in the Securities and Exchange Commission. VanEck Associates Corp A proposal has recently been filed to give the regulator a standing ovation from a previous attempt. JPMorgan strategists said the introduction of bitcoin ETFs should be positive for cryptocurrency in the long term.

Bitcoin slipped on Monday, slipping 15% to nearly $ 32,400. The drop shook confidence in the volatile cryptocurrency boom. Digital Coin, which recently reached a record high of around $ 42,000 as of January 8, traded at $ 35,400 as of 8:26 am in London.

(Updated with latest bitcoin in the last paragraph.)

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