What happens when an unstoppable force collides with an immovable object?
We're about to find out soon.
And the answer will tell us where the price of Bitcoin is headed in the future.
The unstoppable force is demand and an avalanche of it is headed to Bitcoin.
We are already seeing this happen before our very eyes.
Bitcoin is up more than 70% since September and has outperformed all other asset classes in 2023.
Most of this year's demand has been driven by speculation over the approval of a spot Bitcoin exchange-traded fund (ETF).
The biggest player here is BlackRock, which manages nearly $10 trillion in assets. That's almost the same size as the entire $12 trillion gold market.
Fidelity, Invesco, Franklin Templeton, WisdomTree and Ark Invest are also lining up to get Securities and Exchange Commission (SEC) approval for a spot Bitcoin ETF.
Together, these Wall Street titans manage $16.2 trillion in assets.
Now, let's imagine that only 5% of that flows into Bitcoin. Its market capitalization would double from the current level.
Of course, this is hypothetical, but it is based on reality.
(Some studies show that allocating 5% to 10% of your portfolio to Bitcoin and other cryptocurrencies can reduce volatility and improve returns.)
The SEC will eventually approve a spot Bitcoin ETF, even if it has to drag you kicking and screaming to do so.
When it does, these Wall Street giants will buy Bitcoin. Your clients demand it.
According to an international study of 130 family offices responsible for managing $62 billion in assets... 90% say their clients want cryptocurrencies included in their portfolios.
This pales in comparison to the trillions of dollars managed by BlackRock and the other Wall Street "big boys."
They represent institutional investors such as pension funds, sovereign wealth funds, insurance companies and university endowments. And these customers also want access to Bitcoin.
So yeah, 5% of your assets flowing into Bitcoin doesn't seem so hypothetical after all.
We will talk more in depth about this in our last webinar of the year on crypto trends 2024, on my YouTube channel Erika Espinal.
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