The recent surge in Bitcoin’s price has sparked speculation about further increases with the introduction of spot ETFs. The involvement of reputable companies like BlackRock and Fidelity in ETFs could boost institutional investor confidence and lead to a surge in Bitcoin’s price. CoinShares’ Chief Strategy Officer, Meltem Demirors, highlighted that many major US financial institutions are actively working to provide access to Bitcoin. Over $27 trillion in client assets are waiting on the sidelines, indicating the potential impact on price if even a fraction of that money were to flow into Bitcoin spot ETFs. Comparisons are drawn to the launch of gold ETFs in 2004, which resulted in a significant rally in the price of gold. Experts suggest that a similar price action could occur with a Bitcoin ETF launch. Market capitalizations of Bitcoin and gold are compared, highlighting the potential for Bitcoin’s market share to grow. The supply side is also a consideration, with BlackRock and Fidelity having the ability to buy all existing BTC on exchanges by moving just 0.3% of their managed capital into Bitcoin. On-chain analysis shows a decline in BTC supply on exchanges while more coins are being held by long-term holders. All of this data suggests that Bitcoin is poised for a bull run led by institutional investors. However, there is no guarantee, as the US Securities and Exchange Commission could reject Bitcoin spot ETFs. It is also possible that BlackRock could buy Bitcoin over-the-counter, potentially leading to a “buy the rumor sell the news” event. Despite the uncertainties, the involvement of institutional investors and the potential impact on Bitcoin’s price remain significant factors to consider. At the time of writing, Bitcoin’s price was $30,388.
Continue reading on newsbtc.com
By
By
By
By