'Buy the Rumor, Buy the News,' on Spot BTC ETF, Says One Expert, While Another Warns on Coinbase


21 Nov 2023 5:56 PM

Pantera Capital’s Dan Morehead believes a spot bitcoin ETF will ‘fundamentally change access’ to bitcoin, while analysts at JPMorgan say it could be a threat to Coinbase in the medium term....

  • The SEC is facing a deadline to decide on applications for spot bitcoin exchange-traded funds (ETFs) from major companies like BlackRock, Fidelity, and Franklin Templeton.
  • Approval of these ETFs is expected to have a significant impact on the crypto industry, unlike previous milestones such as the introduction of crypto futures or Coinbase going public.
  • Pantera Capital managing partner Dan Morehead believes a BlackRock ETF would fundamentally change access to bitcoin and have a positive impact.
  • JPMorgan analysts agree, noting the price increase of bitcoin as momentum built towards ETF approval.
  • However, the analysts predict that Coinbase could be negatively affected as new investors choose ETFs over exchanges, potentially resulting in a slowdown in new accounts and forcing Coinbase to lower fees.
  • Despite potential challenges, Coinbase could benefit in the long term due to its involvement as a custodian and surveillance partner in the spot bitcoin ETF business.

The sentiment of the article is mixed. There is optimism about the potential positive impact of ETF approval on the crypto industry, particularly for companies like BlackRock. However, there are concerns about the potential negative impact on Coinbase as new investors may choose ETFs over exchanges.

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You May Ask

What is the upcoming deadline that the SEC is facing?Which major companies have applied for spot bitcoin ETFs?How does Pantera Capital managing partner Dan Morehead view the potential approval of a BlackRock ETF?What impact could ETF approval have on Coinbase?How could Coinbase benefit in the long term despite potential challenges from ETFs?

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