Bitcoin ETF enthusiasm fades as JPMorgan expresses doubts

The enthusiasm that followed the news of Blackrock Inc. (BLK), Fidelity, and other firms resubmitting their Bitcoin ETF applications in late June waned in the first week of July. Despite the positive market response, there remained uncertainty regarding the SEC’s stance on approving any, some, or all of the applications.

NASDAQ Stock Market made headlines on Monday by refiling the iShares Bitcoin Trust ETF application with the SEC. Blackrock, in response to SEC comments, announced a surveillance agreement with Coinbase, which is currently facing charges from the SEC.

The market reacted positively to the refiling and Blackrock CEO Larry Fink further contributed to the sentiment by referring to Bitcoin as an international asset and labeling it “digital gold.” However, this brief support was short-lived as BTC and the broader crypto market reversed course due to concerns surrounding the Federal Reserve’s actions.

JPMorgan, the US banking giant, provided its assessment of the Spot ETF applications on Friday. Expressing doubts, the firm stated that the approval of a US Bitcoin ETF would not be a significant game changer. JPMorgan pointed out that similar ETFs have been in existence in Canada and Europe for several years.