LIVEGlassnode: Bitcoin ETF could attract $70 billion to the market
A report published by Glassnode indicates that once a spot Bitcoin ETF is approved, up to $100 billion could enter the market.
A fresh report from Glassnode traces a potential round of investment in the cryptocurrency market: the approval of a spot Bitcoin ETF could contribute upwards of $70 billion.
Experts predict that about 10% of current investment in major stock and bond ETFs will migrate to the world of Bitcoin ETFs, drawing funds not only from the stock and bond sector (60.6 billion), but also from gold (9 .9 billion).
Glassnode, analyzing the situation, expects $70 billion to be deposited into the market, but Bloomberg goes further, predicting a flow of funds of up to $100 billion and the attraction of such giants as BlackRock, Fidelity and Invesco.
The distinctive feature of a spot Bitcoin ETF is that it provides institutions with direct and regulated access to the asset, which can encourage large investments, including partial transfers of capital from existing funds.
In the context of the analysis, the growing illiquid supply of Bitcoin becomes noticeable as investors move assets into their wallets. Meanwhile, exchange balance sheets are signaling limited market liquidity, even as trading volumes recover.
Marcin Milozerny, Glassnode's B2B representative, emphasizes that even a small flow of funds from spot Bitcoin ETFs can have a significant impact on Bitcoin price dynamics.
With the introduction of spot ETFs, changes in market dynamics are inevitable, especially given the preference for long-term Bitcoin holding strategies, which actively increases its scarcity. Glassnode concludes that the approval of a spot Bitcoin ETF will be a game-changer for the market, but changes in supply and demand could cause significant volatility in the cryptocurrency.
