Experts Offer Divergent Views On Spot Bitcoin ETF Approval: One Suggests 'Buy The Rumor, Buy The News,' While Other Highlights Problems For Coinbase

With the forthcoming decision on several spot Bitcoin BTC/USD exchange-traded funds (ETF) proposals, the potential implications for the cryptocurrency sector and Coinbase Global Inc. COIN have sparked divergent views among industry experts.

What Happened: A CoinDesk report revealed that the U.S. Securities and Exchange Commission (SEC) is on the brink of deciding on a host of applications for spot bitcoin ETFs. The applicants include heavyweights in asset management such as BlackRock, Fidelity, and Franklin Templeton.

Pantera Capital’s Managing Partner, Dan Morehead, indicated that the approval of these ETFs could substantially shape the crypto sector.

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Morehead compared past events such as the launch of crypto futures by the Chicago Mercantile Exchange in 2017 and Coinbase’s Nasdaq debut in 2021, which were seen as “buy the rumor, sell the news” occurrences, and did not affect the actual bitcoin demand. However, he opines that a BlackRock ETF could “fundamentally changes access to bitcoin.”

On the contrary, JPMorgan analysts have expressed apprehensions about probable adverse effects on Coinbase, despite its crucial involvement in the ETF race. They anticipate that the approval of bitcoin ETFs might impede the creation of new accounts on Coinbase, as new investors could opt for ETFs over cryptocurrency exchanges.

The analysts also highlighted that the increased transparency and efficiency of the ETF market might compel Coinbase to lower its fees. Nevertheless, they also noted that Coinbase could reap long-term advantages due to its proposed role as a custodian and surveillance associate for several ETF applicants.

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