The rally in the cryptocurrency market seems overrated. This is according to a report by JPMorgan Chase analysts published by The Block.
The bank noted the inflated expectations of traders and investors, dictated by a number of factors. Among them, experts singled out two main ones:
the prospect of approval by the US Securities and Exchange Commission (SEC) of spot bitcoin ETFs;
softening of the supervisory policy of the department, originating from the previous point.
However, there are certain nuances in both cases, the report says. In the first case, positive expectations are dictated by a probable jump in the exchange rate and inflow of capital, but the latter is unlikely, JPMorgan Chase notes:
"We believe that reallocation from existing products such as the GBTC trust and futures ETFs to approved spot exchange-traded funds is more likely to occur."
JPMorgan also questioned the possible relaxation of the SEC's policy after the approval of this product class. Experts noted that the industry, as before, is practically not regulated.
