Institutional Interest in Bitcoin Sparks Hurdles for Proposed ETF
As institutional interest in Bitcoin grows, Fidelity and BlackRock’s proposed spot Bitcoin Exchange-Traded Fund (ETF) is facing a challenge: the crypto market’s reluctance to sell the coin at lower prices.
Bitcoin’s Potential Rise to $60,000
According to value investor and board director Mike Alfred, it is unlikely that BlackRock will be able to purchase BTC below $60,000. This is due to the increasing demand among institutional investors, particularly baby boomers who see Bitcoin as a hedge against inflation and a store of value.
Inflation Concerns and Bitcoin
The Federal Reserve’s intervention during the COVID-19 pandemic led to increased inflation levels in 2021. As a result, baby boomers are turning to Bitcoin to preserve their purchasing power. The Fed’s potential intervention by raising interest rates could impact Bitcoin prices.
Anticipated Approval of Spot Bitcoin ETFs
The SEC is expected to approve the first spot Bitcoin ETF in the coming weeks. This development would attract significant investments from players like BlackRock and Fidelity. However, it is anticipated that these institutions will have to buy Bitcoin at prices above $60,000.
Potential Bullish Trend for Bitcoin
Bitcoin recently surpassed $40,000 and is showing signs of a bullish breakout formation. With the anticipation of SEC approval for spot Bitcoin ETFs, the coin may continue its upward trajectory towards all-time highs of around $70,000.
Hot Take: Institutional Demand and Market Resistance Shape Bitcoin’s Future
The growing interest from institutional investors in Bitcoin presents both opportunities and challenges for the market. While institutions like BlackRock and Fidelity seek to establish spot Bitcoin ETFs, the market’s unwillingness to sell at lower prices may result in these institutions having to purchase Bitcoin at a premium. Nonetheless, the potential influx of boomer money into Bitcoin through approved derivatives products is a significant boost for the coin. As the SEC moves closer to approving spot Bitcoin ETFs, Bitcoin’s price is expected to experience further growth.
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