Crypto News- In the event that the US Securities and Exchange Commission (SEC) grants its approval for Bitcoin spot exchange-traded funds (ETFs, the implications for Bitcoin’s market capitalization (market cap) could be monumental, potentially surging to an impressive $950 billion. Even a relatively modest investment of just 1% from the vast pool of institutional assets, totaling $15.6 trillion, could inject a significant $155 billion into the realm of cryptocurrencies.
Bitcoin Price Poised for 73,000 Dollars Surge with ETF Green Light
This pivotal development wouldn’t merely augment Bitcoin’s market cap; it would also exert a profound impact on its realized market cap, which is computed by summing the acquisition costs of all the Bitcoin tokens in circulation. Drawing from historical data, we can discern that Bitcoin’s market cap typically experiences swifter growth than its realized market cap during periods characterized by substantial inflows. This scenario may well result in a market cap ranging from $465 billion to a staggering $955 billion with the infusion of $155 billion.
The anticipated consequence of Bitcoin ETF approval would manifest as a considerable price surge, potentially propelling Bitcoin to trade within the range of $50,000 to $73,000. This price trajectory would outshine the realized market cap increase of Grayscale Investments’ Bitcoin Trust, which registered a comparatively modest growth of $5.5 billion during the preceding bull market. It’s worth noting that during that particular market surge, Bitcoin’s value soared from $10,000 to an impressive $64,000, eventually peaking at $66,000.
The introduction of a Bitcoin spot ETF would grant institutions a regulated avenue to offer their clientele exposure to Bitcoin. Until now, US-based institutions seeking regulated Bitcoin exposure have primarily opted for Bitcoin futures ETFs offered by industry players such as ProShares and VanEck.
Grayscale’s Bitcoin Trust, inaugurated in 2013, initially provided institutions with the sole regulated option for investing in Bitcoin. Its inflows played a pivotal role in fueling the momentum of the previous bull market. However, the trust’s structure as a closed-ended fund has imposed limitations on its growth.
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