Crypto Firm Galaxy Digital Predicts Bitcoin Surge with US-Regulated Spot ETF Approval
Crypto financial services company Galaxy Digital believes that the approval of a US-regulated spot Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) will have a significant impact on Bitcoin adoption. According to Charles Yu, a research associate at Galaxy Digital, the approval of a spot Bitcoin ETF could lead to double-digit percentage increases in BTC’s value in its first year.
Yu’s research suggests that BTC’s monthly returns could gradually decrease from +6.2% in the first month to +3.7% by the last month of the first year after ETF approval. This would result in an estimated 74% increase in BTC’s value during that period.
Yu also highlights that Bitcoin has a total addressable market size of $48.3 trillion in the US. Currently, approximately 842,000 BTC, valued at around $28.9 billion, are held in existing Bitcoin investment products like exchange-traded products (ETPs) and closed-end funds.
In terms of future prospects for Bitcoin, Yu believes that inflows from ETFs, discussions surrounding the upcoming Bitcoin halving in April 2024, and the possibility of peaking interest rates indicate that 2024 could be a significant year for Bitcoin.
Currently, Bitcoin is trading at $34,300.
Hot Take: Galaxy Digital Expects US-Regulated Spot Bitcoin ETF Approval to Drive BTC Surge
Crypto firm Galaxy Digital predicts that the approval of a US-regulated spot Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) will have a substantial impact on Bitcoin’s adoption and value. Research suggests that BTC’s value could increase by as much as 74% in the first year after ETF approval, with monthly returns gradually declining. With a total addressable market size of $48.3 trillion in the US, Bitcoin is poised for growth, especially with potential inflows from ETFs and the upcoming Bitcoin halving in April 2024. As of now, Bitcoin is trading at $34,300.
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