According to Odaily, financial behemoth JPMorgan has stated that the demand for Bitcoin (BTC) Exchange-Traded Funds (ETFs) has been overstated by two-fold. The firm believes that not all inflows represent new funds entering the crypto sector. They suggest that digital wallets of exchanges may have significantly shifted towards the new spot Bitcoin ETFs, which have become the preferred choice for BTC investments.
The company's statement indicates a potential overestimation of the actual demand for Bitcoin ETFs. This could have implications for the market, as it suggests that the perceived high demand may not necessarily translate into an equivalent amount of new capital flowing into the crypto sector.
JPMorgan's observation that digital wallets of exchanges have significantly shifted towards new spot Bitcoin ETFs also points to a change in investment preferences. This shift suggests that Bitcoin ETFs have become a more popular investment choice compared to other forms of BTC investments. This could potentially influence the strategies of other financial institutions and investors in the crypto market.