Bitcoin’s Market Cap Could Boom with Spot ETF Approval
A new report suggests that Bitcoin’s market cap could experience significant growth if spot exchange-traded funds (ETFs) are approved next year. According to CryptoQuant, a provider of blockchain data, the approval of spot ETFs would attract institutional money into the market, potentially driving Bitcoin’s market cap to $900 billion. Currently, Bitcoin’s market cap stands at $550 billion. Additionally, CryptoQuant believes that the influx of funds into the digital asset space could increase the entire crypto market cap by $1 trillion.
Spot ETFs vs. Grayscale’s Trust
CryptoQuant’s report notes that the potential inflow of money through spot ETFs would surpass the amount invested in the Grayscale Bitcoin Trust (GBTC), the largest Bitcoin fund. Unlike an ETF, GBTC shares are not registered as securities and have limitations on availability and redemption. Grayscale has been seeking SEC approval to convert GBTC into a spot Bitcoin ETF and has sued the SEC for denying its application. However, analysts now expect the SEC to approve Grayscale’s application, along with other pending applications.
Major Players Apply for Spot Bitcoin ETF
A long list of major Wall Street players, including BlackRock, Valkyrie Investments, Ark Invest, and VanEck, have applied for a spot Bitcoin ETF with the SEC. These financial vehicles allow investors to gain exposure to digital assets without directly owning them. While the SEC has been cautious due to concerns about market manipulation, experts predict that it is only a matter of time before a Bitcoin ETF is approved. Bloomberg Intelligence analysts estimate a 90% chance of a Bitcoin ETF being available in the US market by January 10.
Hot Take: Potential Market Cap Growth Awaits Bitcoin with Spot ETF Approval
If spot ETFs are approved next year, Bitcoin’s market cap could experience significant growth, reaching $900 billion, according to a report by CryptoQuant. This influx of institutional money into the market could also boost the entire crypto market cap by $1 trillion. While Grayscale’s Trust has faced SEC hurdles in its quest to become a spot Bitcoin ETF, analysts anticipate the SEC approving not only Grayscale’s application but also those from other major Wall Street players. The increasing interest in spot Bitcoin ETFs suggests that it is only a matter of time before they are available in the US market.
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