Bitcoin Market Cap Could Increase by $1 Trillion with Spot ETF Launch
A recent report from CryptoQuant suggests that the market cap of Bitcoin could rise by as much as $1 trillion with the launch of spot ETFs. While fake news about an approved iShares Bitcoin spot ETF caused a temporary surge in the crypto market, the report explores the potential impact of actual ETF launches.
Multiple Companies Awaiting Approval for Bitcoin Spot ETFs
CryptoQuant’s report highlights several companies waiting to be approved for Bitcoin spot ETFs, including their total assets under management (AUM). Although approval is not expected until March 2024, favorable court rulings for Grayscale and XRP against the SEC have increased the probability of approval.
Potential Inflows and Impact on Market Cap
If these companies allocate just 1% of their AUM to BTC, it could result in inflows of $155 billion for the cryptocurrency. Using the “realized cap” metric, which calculates BTC’s total value based on its last transaction price on the blockchain, CryptoQuant predicts that the market cap could grow by $450 to $900 billion.
Predicted BTC Price Increase
Based on these inflows and growth in market cap, CryptoQuant suggests that BTC’s price could reach between $50K and $73K, representing an increase of 82% to 165% from the current level.
BTC Price
Bitcoin has recently surpassed the $28,500 level, experiencing an uptrend in its price over the past few days.
Hot Take: Spot ETF Launch Could Catapult Bitcoin’s Market Cap
CryptoQuant’s report suggests that the launch of spot ETFs could have a significant impact on Bitcoin’s market cap, potentially increasing it by $1 trillion. With multiple companies awaiting approval and the possibility of inflows of $155 billion into BTC, the cryptocurrency’s price could surge to between $50K and $73K. This prediction highlights the potential for substantial growth in the crypto market and further adoption of Bitcoin.
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