Anticipation for Bitcoin ETF Approval
Many people are eager for the U.S. Securities and Exchange Commission (SEC) to approve a Bitcoin exchange-traded fund (ETF). However, it appears that the SEC still has a substantial amount of paperwork to review.
Impact of Bitcoin ETF
In a recent video, British Hodl discusses the Bitcoin ETF and why it is considered a significant development. He highlights the difference in investment patterns between regular individuals and larger institutions when it comes to investing in Bitcoin.
Usually, individual investors make sporadic investments, whereas the ETF would enable larger funds, such as retirement plans, to make recurring small investments in Bitcoin.
Increased Demand for Bitcoin
The constant inflow of money facilitated by the ETF has the potential to quickly absorb all available Bitcoin in the market. British Hodl emphasizes the importance of focusing on the daily money inflow due to the ETF, rather than just the long-term investment projections.
According to his analysis, maintaining Bitcoin’s price stability at $30,000 would require approximately $30 million in daily purchasing. He suggests that in the first year of Bitcoin ETF trading in the U.S., the total inflow could reach $25 billion, equivalent to an additional $99 million daily.
Price Impact of ETF Trading
British Hodl states that this demand could result in the price of Bitcoin surging to $515,000 on the first day of ETF trading. Even with a more conservative estimate of $10 billion from Bloomberg analyst James Seyffart, he anticipates the price soaring to $77,000 on day one. He emphasizes that the global impact of Bitcoin cannot be overlooked.
Hot Take: The Potential Price Impact of the Bitcoin ETF
The approval of the Bitcoin ETF could lead to a surge in the price of Bitcoin due to increased demand, resulting in significant implications for the cryptocurrency market. It is essential to consider the potential effects of the ETF not only on Bitcoin’s price but also on its global influence.
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