Strategists at JPMorgan Chase caused quite the stir in January when they informed clients that the approval of a Bitcoin (BTC) exchange-traded fund, or ETF, would be a short-term headwind for the digital asset. A United Kingdom-based cryptocurrency hedge fund manager is attempting to pour cold water on those claims, asserting that JPMorgan’s analysis isn’t based on quantitative analysis or in-depth research.
The crux of JPMorgan’s argument is that a new institutional-grade ETF would introduce competition for Grayscale Bitcoin Trust, or GBTC, which has amassed over $22 billion in assets under management. The bank’s strategists say that the new ETF could lead to a cascade of GBTC outflows and cut into the premium.
GBTC boasts a large premium over Bitcoin largely because of its dominant position in the market. Institutional investors that want exposure to the digital asset without having to buy it outright have few options outside of GBTC.
Tyr Capital Arbitrage SP has completed a detailed refutation to JPMorgan’s claims. The fund manager told Cointelegraph: “We disagree with the JPM assessment” on grounds that there is no evidence suggesting that a decrease in theTitle: Crypto hedge fund refutes JPMorgan’s claim that Bitcoin ETF is short-term negative for BTC
Sourced From: cointelegraph.com/news/crypto-hedge-fund-refutes-jpmorgan-s-claim-that-bitcoin-etf-is-short-term-negative-for-btc
Published Date: Wed, 03 Feb 2021 17:03:42 +0000