Bitcoin Could See $17.7 Trillion Influx from Institutional Investors
A former BlackRock manager predicts that spot Bitcoin ETFs will soon be approved in the US, potentially bringing an influx of up to $17.7 trillion from institutional investors. While some market players are skeptical about the SEC approving a spot Bitcoin ETF, others are optimistic. Former BlackRock managing director Steven Schoenfield believes that spot Bitcoin ETFs will make their way into financial institutions within the next three to six months.
Approval of Spot Bitcoin ETFs Is Imminent
The SEC has been under pressure to approve spot Bitcoin ETF applications, and some US senators have urged the SEC to expedite the approval process. Many analysts initially predicted that the SEC would approve the ETFs in early 2024, but Bloomberg analysts now estimate a 75% chance of approval. Steven Schoenfield, CEO of MarketVector Indexes, previously estimated a timeline of “nine to twelve months” for approval but has revised it considering recent updates. He now believes that a spot BTC will likely hit the market within the next three to six months.
Potential Market Game Changer
An approval of spot Bitcoin ETFs could have a significant impact on the digital asset market and potentially drive BTC to new highs. Currently, North America, particularly the United States, accounts for 98% of all crypto futures ETF trading volume. If spot ETFs are approved in the US, this figure could increase to over 99.5%. Institutional investors could bring in up to $17.7 trillion in capital, with BlackRock alone having $9.4 trillion in assets under management (AUM).
Hot Take: Spot Bitcoin ETF Approval Could Transform Crypto Market
If spot Bitcoin ETFs are approved by the SEC, it could be a game-changer for the crypto market. Institutional investors would have easier access to Bitcoin, potentially leading to a significant increase in capital inflow. This approval could propel Bitcoin to new heights and solidify North America’s dominance in the crypto futures ETF trading volume. With major financial institutions like BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, and VanEck waiting for approval, the market is eagerly anticipating this development. Keep an eye on the SEC’s decision in the coming months as it could reshape the future of Bitcoin.
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