Bitcoin Market Cap Could Rise by $1 Trillion After Spot ETFs Launch, According to CryptoQuant Report
Bitcoin (BTC) is the world's largest cryptocurrency by market capitalization, and it has been on a tear lately. The asset has gained over 50% in value in the past month alone, and it is now trading at over $30,000.
One of the reasons for Bitcoin's recent surge is the anticipation of the launch of spot ETFs. Spot ETFs are investment vehicles that track the price of an underlying asset, such as a stock or commodity. In this case, the underlying asset would be Bitcoin.
Spot ETFs are different from futures ETFs, which track the price of Bitcoin futures contracts. Futures contracts are agreements to buy or sell an asset at a predetermined price on a future date.
Spot ETFs offer a number of advantages over futures ETFs. First, spot ETFs are more direct and easier to invest in. Second, spot ETFs are typically more liquid and have lower fees than futures ETFs.
According to a recent report by CryptoQuant, a crypto analytics firm, the launch of spot ETFs could cause the Bitcoin market cap to rise by as much as $1 trillion.
The report states that the asset managers who are applying for spot ETFs have a combined $15.6 trillion in assets under management. If these asset managers invest just 1% of their AUM in Bitcoin, the BTC market cap would increase by $155 billion.
The report also states that the launch of spot ETFs could lead to a surge in new investment into Bitcoin. This is because spot ETFs would make it easier and more convenient for investors to invest in Bitcoin.
Overall, the launch of spot ETFs is a major bullish event for Bitcoin. It has the potential to bring a wave of new investment into the asset and to drive its price to new all-time highs.
Here are some of the reasons why spot ETFs could have a major impact on the Bitcoin market:
Spot ETFs would make it easier and more convenient for investors to invest in Bitcoin.
Spot ETFs would be more liquid and have lower fees than futures ETFs.
Spot ETFs would attract new investors to Bitcoin, including institutional investors.
Spot ETFs would give Bitcoin more legitimacy and credibility in the eyes of the mainstream financial world.
If Bitcoin's market cap does rise by $1 trillion after the launch of spot ETFs, it would be a major milestone for the asset. It would mean that Bitcoin would be worth more than all of the world's gold reserves combined.
It is important to note that the CryptoQuant report is just a prediction, and there is no guarantee that Bitcoin's market cap will actually rise by $1 trillion after the launch of spot ETFs. However, the report does highlight the potential for spot ETFs to have a major impact on the Bitcoin market.
