The US Securities and Exchange Commission (SEC) may have an impact on Bitcoin price. Because there are applications ahead. Accordingly, it is evaluating BlackRock’s application for a Bitcoin spot exchange-traded fund (ETF). On the other hand, the cryptocurrency market is holding its breath. There’s an interesting approach, according to a recent research note from Matrixport. The approval of this ETF announced the level at which the price of Bitcoin will reach. Here are the details.
Impact of BlackRock’s ETF approval on Bitcoin price
Matrixport’s projection looks at what would happen if BlackRock’s Bitcoin ETF becomes a reality. It is based on the idea that the registered investor advisor (RIA) community, which is responsible for approximately $5 trillion in assets, can allocate 1% of its assets to Bitcoin. This change will potentially inject $50 billion into the cryptocurrency market. Accordingly, the price of Bitcoin will increase significantly. In this case, it will reach the level of $ 56,000.
In a more conservative scenario, Matrixport also says what would happen if there was an inflow of between $12 billion and $24 billion from precious metal ETF investors looking to diversify their portfolios by adopting a Bitcoin ETF. Accordingly, the price of Bitcoin will reach $ 42,000.
CryptoQuant’s parallel predictions
Matrixport’s latest predictions match those made by crypto analysis firm CryptoQuant. According to CryptoQuant, approval of a spot Bitcoin ETF would increase Bitcoin’s market value to $900 billion. Additionally, the broader crypto market will expand by an impressive $1 trillion. CryptoQuant’s projection is based on the assumption that ETF applicants can allocate up to 1% of their Assets Under Management (AUM) to these funds. Accordingly, this results in a potential price range for Bitcoin price between $50,000 and $73,000.
It is worth noting that both Matrixport and CryptoQuant highlight the potential for spot ETF capital inflows to exceed that experienced by Grayscale’s Bitcoin Trust (GBTC) during the previous bull market. On the other hand, the first phase of corporate adoption involves integrating Bitcoin into balance sheets. Accordingly, the next stage involves financial institutions providing customer access to the asset through spot ETFs.
Pending cryptocurrency community approval
The cryptocurrency community saw what would happen after a false news regarding spot Bitcoin ETF approval. He is closely monitoring the SEC’s decision after the news briefly sent the Bitcoin price soaring to $30,000. The overall market sentiment seems to be one of pent-up demand for such ETFs. Many market observers also point out that the confirmations will be an all-time record for the Bitcoin price.
As Kriptokoin.com, the crypto world is waiting for BlackRock’s ETF decision. On the other hand, the market is preparing for potential price increases, especially the Bitcoin price, in the coming months.
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