Spot Bitcoin ETF Could Lead to a 155% BTC Price Increase, Says CryptoQuant
CryptoQuant, an on-chain data provider, believes that the approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) could have a significant impact on the price of BTC. According to their report, if Wall Street firms such as BlackRock, VanEck, and Fidelity Investments allocate a fraction of their assets under management (AUM) to a spot Bitcoin ETF, billions of dollars could flow into the BTC market and double or even triple its price.
Financial Giants Seeking Spot Bitcoin ETFs
The report highlights that some major financial giants are currently seeking to issue spot Bitcoin ETFs. These include BlackRock, VanEck, and Fidelity Investments. If approved, these ETFs could bring around $155 billion into the Bitcoin market based on a 1% allocation of their AUM.
Potential Price Increase for Bitcoin
Based on these inflows of fresh money, the market capitalization of Bitcoin could increase between 82% and 165%, leading to a potential price range of $50,000 to $73,000 for BTC. This represents a significant gain from its current price of $28,550.
Timeline for Approval
Although the approval of spot Bitcoin ETFs is not expected this year, CryptoQuant suggests that the probability of approval by the final deadline in March 2024 is growing. They point to favorable court rulings for Grayscale’s GBTC Fund and XRP in their legal battles against the SEC as factors contributing to this increased likelihood.
Hot Take: Spot Bitcoin ETFs Poised to Catalyze BTC Price Surge
If approved, spot Bitcoin ETFs could have a profound impact on the price of BTC, potentially leading to a 155% price increase. With major financial institutions such as BlackRock, VanEck, and Fidelity Investments seeking to issue these ETFs, billions of dollars could flow into the Bitcoin market. This influx of fresh money could double or even triple the price of BTC, resulting in a potential price range of $50,000 to $73,000. While approval is not expected this year, recent court rulings have increased the probability of approval by March 2024. Overall, the introduction of spot Bitcoin ETFs has the potential to bring significant changes to the cryptocurrency market.
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