CryptoQuant, a blockchain data analysis company, pointed out in a recent report that if the U.S. Securities and Exchange Commission (SEC) allows the listing of Bitcoin spot ETFs, Bitcoin is expected to jump to an asset with a market value of US$900 billion, with a price of US$50,000. US dollars to US$73,000, while the overall cryptocurrency market capitalization will also increase by US$1 trillion.
The overall cryptocurrency market capitalization crossed the $1 trillion mark for the first time in January 2021, reaching $1.13 trillion at press time, while Bitcoin’s market capitalization is $556.8 billion.
CryptoQuant pointed out in the report that during the bull market from 2020 to 2021, the cryptocurrency market ushered in the first wave of institutional adoption. At that time, many listed companies rushed to add Bitcoin to their balance sheets. As for the next big wave, , it may benefit from financial institutions providing Bitcoin investment opportunities to customers through spot ETFs, and the amount of capital inflows will be greater than before.
The U.S. SEC officially released Bitcoin futures ETFs in October last year, but has not yet approved the listing of any Bitcoin spot ETFs. Fund companies that have submitted applications include BlackRock, Fidelity, and Ark Investments. ARK Invest), Invesco, VanEck, Valkyrie, WisdomTree and Bitwise.
CryptoQuant said that assuming that each of the above-mentioned fund companies invests 1% of its assets under management (AUM) in its own Bitcoin spot ETF, the funds flowing into the Bitcoin market may be as high as approximately 155 billion US dollars, almost accounting for Bitcoin’s current one-third of the market capitalization.
The report states that once this happens, the price of Bitcoin is likely to climb to $50,000 to $73,000.
Based on data from past bull markets, Bitcoin’s market cap growth has typically been 3 to 5 times higher than realized capital. This suggests that every time $1 of new money enters the Bitcoin market, Bitcoin’s market capitalization increases by $3 to $5, CryptoQuant added.
This article CryptoQuant Report: Bitcoin could soar to as high as $73,000 if spot ETF is approved appeared first on Blockchain.
