JPMorgan Report Highlights Rising Optimism for BTC ETF Approval

In a research report published on Wednesday, JPMorgan (JPM) stated that optimism regarding the approval of a spot bitcoin (BTC) exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC) continues to rise.

This optimism is reflected in Bitcoin’s strong outperformance relative to other digital assets, according to the report.

Additionally, the report noted that the most popular cryptocurrency recently reached a new annual high.

According to the group of analysts led by Nikolaos Panigirtzoglou, who authored the report, “it appears that institutions participated in this most recent flow impulse.”

The bank’s research on the cryptocurrency futures market lends credibility to this assertion.

The analysts wrote, referring to the Chicago Mercantile Exchange (CME), “Our futures position proxy based on CME bitcoin futures has spiked over the past week, rising not only to the highest level for this year but also to levels last seen in August 2022 before the FTX collapse.” The analysts wrote, “Our futures position proxy is based on CME bitcoin futures, which institutional investors primarily use.”

According to JPMorgan, the equivalent futures position proxy for CME ether (ETH) futures remains inactive.

Institutional participation in the recent rally was reflected in the analysis of bitcoin flows, according to the note. There has been a substantial influx of Bitcoin into larger wallets, indicative of institutional investor demand.

In contrast to the previous quarters, when smaller wallets and retail investors drove the bitcoin impulse, this is the case now, according to the report.