Experts Offer Divergent Views On Spot Bitcoin ETF Approval: One Suggests 'Buy The Rumor, Buy The News,' While Other Highlights Problems For Coinbase
Portfolio Pulse from Benzinga Neuro
The SEC is close to making decisions on several spot Bitcoin ETF proposals, with major asset managers like BlackRock, Fidelity, and Franklin Templeton involved. Dan Morehead of Pantera Capital believes approval could significantly impact the crypto sector, likening it to a 'buy the rumor, buy the news' event that could change bitcoin access. Conversely, JPMorgan analysts warn that Coinbase (NASDAQ:COIN) might face challenges such as reduced new account creation and pressure to lower fees if ETFs are approved, although Coinbase could benefit in the long run as a custodian and surveillance partner for ETFs.
November 22, 2023 | 8:07 am
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Coinbase may face challenges if spot Bitcoin ETFs are approved, including potential reduction in new account creation and pressure to lower fees, but could also benefit from its role as custodian and surveillance partner for ETF applicants.
The approval of Bitcoin ETFs could lead to a decrease in new account creation for Coinbase as investors might prefer ETFs over direct cryptocurrency exchange services. This could also force Coinbase to lower its fees due to increased market efficiency and transparency. However, the company's involvement as a custodian and surveillance partner could offset some negative impacts and provide long-term benefits.
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