CoinShares, one of the leading companies in the field of digital asset management, has conducted comprehensive research assessing whether capital flows into Bitcoin-based exchange-traded funds (ETFs) in the US could lead to a potential impact on Bitcoin (BTC) price dynamics. This study, led by CoinShares Head of Research James Butterfill, offered remarkable insights by looking at possible changes in BTC price following the potential approval of Bitcoin Spot ETFs in the US. Details are in our news…
According to the analysis conducted on the Fund Flows Model used by CoinShares, increasing interest and capital inflows to BTC ETFs in the USA can significantly affect Bitcoin prices. The model predicts that the Bitcoin price could rise above $141,000 within the first 12 months, especially if ETFs gain approval.
James Butterfill notes that the Funds Flows Model evaluates potential investment flows into Bitcoin Spot ETFs, showing that the BTC price could increase significantly under the influence of these funds. The model in question is based on the assumption that spot Bitcoin ETFs could create a $14.4 trillion market, based on Galaxy’s report.
If just 10 percent of these fund holders invested 1 percent of their wealth in BTC ETFs, capital inflows into this segment would exceed $14.4 billion. According to this envisioned scenario, if BTC ETFs are approved by the SEC, there could be a potential 300% increase in the value of Bitcoin in the first 12 months. Given the aforementioned $14.4 billion capital inflow, the model predicts that Bitcoin price could rise as high as $141,000.
if #Bitcoin ETFs are launched in the US, could the price of $BTC reach US$141,000?
In his latest report, @jbutterfill examines the relationship that appears to exist between inflows as a percentage of Assets Under Management and changes in price: https://t.co/zOJkafKBYj
NEWS CONTINUES BELOW📈 A… pic.twitter.com/iU1UTzbPzY
— CoinShares (@CoinSharesCo) November 17, 2023
However, the limits of this potential do not end there. If there is an additional $31 billion inflow into the segment, Bitcoin’s value could rise even further, pushing the cryptocurrency’s price up to $265,000.
At the same time, the authors of the forecast note that “it is very difficult to determine how large the potential wall of demand will be when a spot-based ETF is launched.”
Koinfinans.com As we reported, nearly all US asset management heavyweights have filed requests with the SEC for BTC Spot ETF approval. Some analysts are confident that at least one of these requests could be approved by the SEC by the end of 2024.
In conclusion, CoinShares’ detailed research sheds important light on understanding the potential impact of US Bitcoin ETFs on Bitcoin prices. However, like every investment decision, these predictions should be considered in a broad perspective and general conditions in the market and other variables should be taken into account.
You can follow the current price movement here.