It’s unclear how much fresh capital the new spot bitcoin exchange-traded funds (ETF) will attract, but significant funds from other crypto products are expected to pour in, J.P.Morgan said in a Thursday research report.The market reaction to the U.S.Securities and Exchange Commission’s (SEC) reluctant approval of spot [Bitcoin](http://pubads.g.doubleclick.net/gampad/clk?id=5703293170&iu=/7138/FXS30) (BTC) ETFs has been relatively muted, with the focus now shifting to how much capital these new ETFs will pull in, the report said “We are skeptical of the optimism shared by many market participants at the moment that a lot of fresh capital will enter the crypto space as a result of the spot bitcoin ETF approval,” analysts led by Nikolaos Panigirtzoglou wrote.Still, the bank does see a significant rotation from existing crypto products into the newly created ETFs, so even if no new capital enters the [cryptocurrency](http://pubads.g.doubleclick.net/gampad/clk?id=5703845201&iu=/7138/FXS30) market, the new ETFs could still attract inflows of up to $36 billion.The bank says about $3 billion could exit the Grayscale Bitcoin Trust (GBTC) and migrate to the new spot ETFs as a result of investors taking profit after buying discounted GBTC shares in the secondary market in the last year.
It also sees up to $20 billion from retail investors migrating from digital wallets held at [crypto exchanges](https://www.fxstreet.com/cryptocurrencies/resources/brokers-best-cryptocurrencies-exchanges) to the new ETFs.Grayscale’s high fees could also trigger outflows, and unless it lowers its rates toward the level set by Blackrock (BLK) and other providers, “a lot more capital, perhaps an additional $5 billion-$10 billion could exit GBTC relatively quickly to migrate towards cheaper spot bitcoin ETFs,” the bank added.
Institutional investors that hold their crypto in fund format could shift from futures-based ETFs and GBTC to cheaper spot ETFs, especially if GBTC is slow to cut its fees, the report added.All writers’ opinions are their own and do not constitute financial advice in any way whatsoever.Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities.CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.[Join Telegram](https://t.me/fxstreetcrypto) Follow us on Telegram Stay updated of all the news Recommended Content Editors’ Picks [Axie Infinity Prediction: AXS reclaiming the Christmas high of $11.15 will remain hopium unless this happens](https://www.fxstreet.com/cryptocurrencies/news/axie-infinity-prediction-axs-reclaiming-the-christmas-high-of-1115-will-remain-hopium-unless-this-happens-202401140625) [](https://www.fxstreet.com/cryptocurrencies/news/axie-infinity-prediction-axs-reclaiming-the-christmas-high-of-1115-will-remain-hopium-unless-this-happens-202401140625) Axie Infinity (AXS) and Bitcoin Cash (BCH) have recorded more short bets than longs this weekend, data from behavior analytics tool Santiment shows.It comes as the market expects the two altcoins to drop further, unlike the broader market which is expected to recover.
[More Axie Infinity News](https://www.fxstreet.com/cryptocurrencies/news?q=AxieInfinity&hPP=15&idx=FxsIndexPro&p=0) [Chainlink price teases with a 20% upside potential as LINK coils up for its next move](https://www.fxstreet.com/cryptocurrencies/news/chainlink-price-teases-with-a-20-upside-potential-as-link-coils-up-for-its-next-move-202401140500) [](https://www.fxstreet.com/cryptocurrencies/news/chainlink-price-teases-with-a-20-upside-potential-as-link-coils-up-for-its-next-move-202401140500) Chainlink price has been consolidating between the $13.330 and the $17.163 market range since November 8.
The ensuing price action has been typical of a market full swing market cycle, presenting clear opportunities for perpetual traders to ride the series of trends, with the next one likely to be a recovery.[More Chainlink News](https://www.fxstreet.com/cryptocurrencies/news?q=Chainlink&hPP=15&idx=FxsIndexPro&p=0) [Spot Bitcoin ETF approvals in the US inspires ambition among Hong Kong industry insiders](https://www.fxstreet.com/cryptocurrencies/news/spot-bitcoin-etf-approvals-in-the-us-inspires-ambition-among-hong-kong-industry-insiders-202401140400) [](https://www.fxstreet.com/cryptocurrencies/news/spot-bitcoin-etf-approvals-in-the-us-inspires-ambition-among-hong-kong-industry-insiders-202401140400) Spot Bitcoin exchange-traded funds (ETFs) have been the driving theme in the US market over the past few months, with the climax happening on January 10.Thus was when the US Securities and Exchange Commission (SEC) approved all eleven investment products to launch, with trading kicking off on January 11.[More Cryptocurrencies News](https://www.fxstreet.com/cryptocurrencies/news) [Celestia price tops out with a possible 10% correction for TIA before another buying opportunity](https://www.fxstreet.com/cryptocurrencies/news/celestia-price-tops-out-with-a-possible-10-correction-for-tia-before-another-buying-opportunity-202401140300) [](https://www.fxstreet.com/cryptocurrencies/news/celestia-price-tops-out-with-a-possible-10-correction-for-tia-before-another-buying-opportunity-202401140300) Celestia (TIA) price action since late October has been characterized by strong interest among the bulls to capitalize on every correction.Resultantly, each dip was countered by aggressive buying that saw TIA market value quickly pullback north.
With TIA now overbought, the altcoin may be due for a correction before another foray north.[More Celestia News](https://www.fxstreet.com/cryptocurrencies/news?q=Celestia&hPP=15&idx=FxsIndexPro&p=0) [Bitcoin: BTC crashes as GBTC dumps, but bullish outlook still not under threat](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-weekly-forecast-btc-crashes-as-gbtc-dumps-but-bullish-outlook-still-not-under-threat-202401121900) [](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-weekly-forecast-btc-crashes-as-gbtc-dumps-but-bullish-outlook-still-not-under-threat-202401121900) Bitcoin (BTC) price action since October has been broadly bullish, consolidating within an ascending price channel.The hype around spot BTC exchange-traded funds (ETFs) played a role in nurturing this uptrend, as well as the halving event that remains on the horizon.With the spot BTC ETFs narrative priced in already after the January 10 landmark decision, traders and investors are now navigating the aftermath as the waves of institutional money meet the shores of crypto.
[Read full analysis](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-weekly-forecast-btc-crashes-as-gbtc-dumps-but-bullish-outlook-still-not-under-threat-202401121900).