Glassnode: Bitcoin ETF To Unlock $70B in New Demand
A new report predicts up to $70 billion could pour into Bitcoin if a spot ETF is approved.
According to a recent report by on-chain data firm Glassnode, there is significant unmet demand from investors for a spot Bitcoin exchange-traded fund (ETF).
Glassnode estimates that up to $70 billion in new capital could flow into the Bitcoin market after the approval of a spot Bitcoin ETF. This projection is based on the assumption that 10% of money currently invested in major stock and bond ETFs would shift to a Bitcoin ETF, along with 5% of capital allocated to gold ETFs.
The report points to diminishing Bitcoin supply available for trading to meet this potential demand surge. Glassnode data shows the percentage of the Bitcoin supply held by short-term investors recently hit multi-year lows. Meanwhile, the share of long-term Bitcoin holders reached all-time highs above 76% in October.
"The scarcity of readily tradable Bitcoin may amplify market volatility and price movements in response to the influx of ETF-driven capital," the Glassnode report concludes.
U.S. regulators have yet to approve a spot Bitcoin ETF. Approval could significantly expand access and demand for Bitcoin from institutional investors.
Glassnode suggests a spot Bitcoin ETF could have impacts comparable to the first U.S. gold ETF launched in 2003. In the decade that followed, gold prices rose over 400% amid greater investment demand.
