JPMorgan (JPM), in a report published on Thursday, said that the U.S. Securities and Exchange Commission’s (SEC) approval for an exchange-traded bitcoin fund (ETF) would not change crypto markets.

JPMorgan stated that the SEC, despite having received numerous applications for an ETF, is more optimistic about its approval now because it has been assumed that some previous concerns have been addressed by recent filings.

Analysts led by Nikolaos Pantigirtzoglou have written that “Spot Bitcoin ETFs” are available outside of the U.S. and Canada, but they have not attracted large investor interest.

Last month, a unit of BlackRock submitted paperwork for the creation of a bitcoin spot ETF. This prompted other asset managers like Invesco or Wisdom Treeto apply or reapply.

The report stated that “Bitcoin Funds, including those based on futures and those backed by physical assets, have received little interest from investors since Q2 of 2021. They also failed to benefit from the investor outflows in gold ETFs during the last year or two.”

The note stated that physical backed bitcoin funds offer some advantages, but they are marginal. Spot ETFs are a direct and more secure way to get exposure to bitcoin. They remove the complexity of direct custody, transfer and basis risk of futures-based funds.

The report stated that “Spot ETFs will reflect the real-time supply and demand better than futures-based ETFs. Their approval in the U.S. could bring more liquidity to the spot bitcoin market and improve price transparency.”

The bank stated that the introduction of spot Bitcoin ETFs may lead to a shift in trading activity and liquidity from the U.S. Bitcoin Futures Markets, “to the degree spot bitcoins ETFs replace the futures-based ETFs.”

Read more: Bernstein: The probability of the U.S. approving a Bitcoin Spot ETF is fairly high.

Sheldon Reback is the editor.