The Potential Impact of Spot Bitcoin ETFs on Crypto Market
CryptoQuant predicts that the approval of spot Bitcoin exchange-traded funds (ETFs) in the US could lead to a $1 trillion increase in crypto market capitalization and drive BTC’s price up to $73,000. According to the research firm, the launch of spot Bitcoin ETFs will likely trigger the next wave of institutional adoption, resulting in an initial inflow of $150 billion in assets once approved.
Historical Data and Potential Price Surge
Based on historical data, CryptoQuant estimates that such an increase in market capitalization would raise Bitcoin’s market cap by $450 billion to $900 billion. This surge would potentially push BTC’s price to a range of $50,000 to $73,000.
Spot Bitcoin ETF Applications Under Review
A number of fund management heavyweights, including ARK 21 Shares, BlackRock, Bitwise, VanEck, Invesco Galaxy, Fidelity, and Valkyrie, have filed at least seven spot Bitcoin applications. These applications are currently under review by the Securities and Exchange Commission (SEC).
SEC Under Pressure for Approval
The SEC is facing increasing pressure to approve spot Bitcoin ETFs following Grayscale Investments’ court victory against the regulator. The judge criticized the SEC’s decision to approve Bitcoin Futures ETFs while neglecting spot Bitcoin ETFs as “arbitrary and capricious.” With the SEC choosing not to appeal this decision, the likelihood of imminent approval has increased.
Former BlackRock director Steven Schoenfield suggests that spot Bitcoin ETFs could be approved as early as January and attract up to $200 billion in Bitcoin investment products.
Hot Take: Spot Bitcoin ETFs Poised to Drive Crypto Market Growth
The approval of spot Bitcoin ETFs in the US has the potential to significantly impact the crypto market. With an expected influx of institutional investments and a surge in market capitalization, Bitcoin’s price could reach new heights. The SEC is under pressure to approve these ETFs, and their approval could pave the way for further adoption and growth in the crypto industry.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.