From Nasdaq:

Several new spot Bitcoin exchange-traded funds (ETFs) have recently hit the market, allowing more investors to access the crypto asset class. Expectations are high regarding increased demand for Bitcoin as a result, but there are hidden opportunities for companies to profit from these funds. The approval of spot Bitcoin ETFs by the SEC did not allow for “in-kind” creations and redemptions, which is how many ETFs typically work. Instead, the funds will rely on authorized participants providing cash to the issuer, opening the door for tightly regulated banks to become major beneficiaries, such as JPMorgan Chase. Coindesk and BlackRock have also played a role in the ETFs, holding Bitcoin in “cold storage” as a third-party custodian, with Coinbase Global set to collect a fee for their services. However, the fees could be impacted by the new ETFs and weigh on Coinbase’s take rate. Counterintuitively, the inflow of custodial funds could be a substantial source of growth for Coinbase, and as Bitcoin matures as an investable asset, Coinbase could come out ahead.

The stability and long-term growth potential of JPMorgan Chase make investing in the bank worth considering, with its diversification in retail and commercial banking and leading position in the market. Meanwhile, the inflow of custodial funds could have a pronounced impact on the value of Bitcoin, pushing it higher, and providing potential additional growth for JPMorgan Chase. As the price of Bitcoin increases, trading activity on Coinbase’s platform increases, making it a potential stock to watch for some investors. With many predicting trillions of dollars flowing into these ETFs over time, there is a possibility for significant growth for both JPMorgan Chase and Coinbase in the long run.



Read more: The Hidden Winners Behind the New Bitcoin ETFs. Should You Buy Them Instead?