Bitcoin ETF Launch Triggers Price Fluctuations; Spot ETFs Preferred Globally

JP Morgan Predicts Significant Capital Inflow into New Bitcoin ETFs Despite Investor Preference for Spot Over Futures-Based ETFs

Bitcoin's price fell to $41,500 before recovering after the launch of the first spot Bitcoin ETFs in the US, with analysts predicting support at $40,000.
JP Morgan predicts significant capital from existing crypto products will flow into new spot Bitcoin ETFs, potentially attracting up to $36 billion even if no new capital enters the crypto market.
Spot Bitcoin ETFs, which hold the underlying asset and offer direct exposure to Bitcoin price movements, are preferred by investors globally over futures-based ETFs, which replicate a Bitcoin derivative and may not accurately track Bitcoin's price.
Despite the preference for spot ETFs, the US Securities and Exchange Commission (SEC) has repeatedly rejected them, citing concerns about market manipulation.
The launch of futures-based ETFs could lead to an influx of capital into the ETF markets and increase buying pressure on Bitcoin.