In a recently published report Matrixport has recently analyzed the potential impact the approval of BlackRock’s spot Bitcoin exchange-traded fund (ETF) could have on the cryptocurrency space, suggesting $BTC could surge to $56,000.
In the report, Matrixport noted that if the total market capitalization of leading stablecoin Tether rises by $24 billion as it acts as a proxy for potential ETF inflows, the price of the flagship cryptocurrency would rise to $42,000, up from its current level of $28,800.
It adds that if there’s an inflow of $50 billion, a figure that would represent a 1% allocation from registered investment advisors, the price of the flagship cryptocurrency could potentially surge to $56,000.
The $50 billion figure comes from an earlier report from the firm that analyzed the “15,000-strong US registered investor advisor (RIA) community overseeing around $5 trillion.”
Comparing the market capitalization of precious metals ETFs of around $120 billion and assuming that 10% to 20% of investors exposed to these funds would look at BTC to “diversify their monetary debasement and inflation hedges,” there would be $12 to $24 billion of inflows into a Bitcoin ETF.
Notably, as CryptoGlobe reported, after he cryptocurrency market entered a frenzy after rumors falsely suggested that the U.S. Securities and Exchange Commission (SEC) had approved BlackRock’s spot Bitcoin exchange-traded fund (ETF) application, an analyst has now suggested that $BTC could reach $1 million and over $21 trillion in market capitalization.
Analyst Alessandro Ottaviani, on the microblogging platform X (formerly known as Twitter), has now suggested that as Bitcoin’s market capitalization went up by more than $50 billion in minutes on the rumors, while estimating that roughly $500 million of capital entered the market, suggesting a ratio of 100:1, meaning that for every dollar that entered the market, BTC’s market capitalization rose $100.
The analyst cited a former BlackRock Director as saying that between $150 billion to $200 billion can be expected to enter the Bitcoin market in three years after a spot Bitcoin ETF is approved in the United States.
Using the same ratio, the analyst said that a $200 billion capital inflow would theoretically lead to a Bitcoin market cap of $21 trillion. In such a scenario, the price of Bitcoin would reach $1 million per coin.
A spot Bitcoin ETF would provide a regulated and mainstream investment vehicle for investors to get exposure to Bitcoin without owning the cryptocurrency directly.
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