An important event that could provide $30 trillion in liquidity to the crypto market
According to Bloomberg analyst Eric Balchunas, the approval of a Bitcoin exchange-traded fund has the potential to be a game-changer in unlocking massive reserves of capital for the cryptocurrency market . His analysis estimates that $ 30 trillion worth of assets controlled by US financial advisors could be converted into investments in Bitcoin if the spot ETF is signaled green by the US Securities and Exchange Commission.
The domino effect of BlackRock's involvement introduced BlackRock, the world's largest asset manager with assets under management of more than $9 trillion. Its application for a bitcoin ETF last month. Which led to a major change in the landscape of possibilities. According to Balchunas, the chances of spot ETFs being approved rose from 1% to 50% after BlackRock's involvement. With BlackRock's recent implementation boosting optimism in the cryptocurrency market. The race to launch the first Spot Bitcoin ETF in the US has never been more intense.
Their request sparked a wave of similar requests by other prominent firms such as ARK Investment, Valkyrie, and Fidelity, setting the stage for a highly competitive environment.
Although there are Bitcoin futures ETFs in the US. However, they pale in comparison to what spot ETFs can bring to the table. Currently, futures-based ETFs account for only about $1 billion of total assets under management. Balchunas describes the approval of the Spot Bitcoin ETF as a âholy grailâ that would dwarf existing offerings and stimulate the cryptocurrency market like never before.
The Impact of Bitcoin Spot ETF on Cryptocurrencies As of the time of this writing, the price of Bitcoin is trading at $25,712.38, with a market cap of just over $500 billion. While the currency witnessed marginal fluctuations, falling by 0.12% over the past 24 hours. However, the broader cryptocurrency market remains optimistic. The spot ETF will not only benefit bitcoin.
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