The future of Bitcoin's price is shrouded in anticipation as crypto enthusiasts eagerly await the verdict on BlackRock's Bitcoin spot ETF from the US Securities and Exchange Commission (SEC). A recent analysis by Matrixport has painted a promising picture, suggesting that Bitcoin could experience a significant upswing, ranging between $42,000 and $56,000, if the ETF gets the green light.
Matrixport's Calculations
Matrixport's predictions are rooted in a careful examination of 15,000 US registered investment advisors (RIAs). The analysis foresees potential inflows of $12 billion to $24 billion into a Bitcoin ETF. Drawing parallels with Tether's market cap increase, the company suggests that Bitcoin could reach $42,000 with a conservative $24 billion influx. A larger $50 billion inflow could propel Bitcoin to an impressive $56,000.
The Role of Registered Investment Advisors
RIAs, who oversee approximately $5 trillion, hold the key to this potential price surge. Matrixport believes that even a modest 1% allocation from this group could lead to substantial inflows of up to $50 billion.
Comparing with Precious Metals ETFs
Drawing parallels with precious metals ETFs, which boast a combined market cap of around $120 billion, Matrixport contends that a 10-20% diversification of precious metal ETF investors into a Bitcoin ETF could bring a substantial $12–$24 billion in investment.
The Ongoing Approval Process
BlackRock and other prominent institutions, including Invesco, Valkyrie, and Fidelity, filed applications for spot Bitcoin ETFs in June. While the SEC initiated further proceedings last month, potentially leading to a delay of at least another month, the outlook remains positive for these groundbreaking ETFs.
An Unexpected Surge
Interestingly, a misreport about BlackRock's spot ETF approval had a profound impact on Bitcoin's price. During October's turbulent trading day, a 5% surge propelled Bitcoin to nearly $30,000, showcasing the immense impact that ETF approvals can have on the market.
Expert Insights
Martin Bednall, a former BlackRock executive, offers valuable insight, suggesting that the SEC is likely to approve all spot Bitcoin ETF applications simultaneously. This could potentially pave the way for a new era in crypto investments and a surge in Bitcoin's price.
Conclusion
The potential approval of BlackRock's Bitcoin spot ETF has ignited optimism in the cryptocurrency community. Matrixport's analysis hints at a bright future, with the price of Bitcoin poised to ascend to impressive heights. With the approval process underway and expert opinions leaning favorably, the crypto market is poised for a transformation that could see Bitcoin soar to new heights, redefining the landscape of digital investments.