Crypto financial services platform Matrixport has predicted that an approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) could push the price of Bitcoin between $42,000 and $56,000 per unit.
BTC, the world’s largest cryptocurrency, has experienced notable increases in value throughout the current week, with the aim of surpassing the significant threshold of $30,000. The cryptocurrency has been influenced by the operations of a as investors continue to await approval to onboard institutional and mainstream exposure to the digital asset.
Bitcoin Is Headed For $56,000
Matrixport conducted an analysis in its newly released , examining the potential effects of a spot Bitcoin exchange-traded fund (ETF) on the , with a specific focus on BTC. Applications for these investment vehicles have gained momentum in recent months, with many now expecting a green light from the SEC.
The report draws a parallel close to the $120 billion precious metals ETF industry. If just 10–20% of investors in precious metal ETFs diversified their holdings into Bitcoin ETFs, it would result in an influx of $12b billion to $24 billion into these investment vehicles.
According to Matrixport, an approval, particularly a BlackRock Bitcoin ETF application, would see leading stablecoin USDT increase by as much as $50 billion in market cap. This, in turn, would lead to Bitcoin’s price rising to $56,000, with Tether acting as an intermediary facilitating the inflow of investments to BTC.
“Our earlier reports analysed the 15,000-strong US registered investor advisor (RIA) community overseeing around $5 trillion. This group holds immense potential, and even a modest 1% allocation recommendation for Bitcoin would usher in around $50 billion in inflows,” the report said.
A lesser influx of $24 billion into Tether would see BTC rise to $42,000 in the short term. With BTC currently trading at $29,370 with a market cap of $625.03 billion, this represents an increase of 90% and 43% in both scenarios.
BTC readies to break $30,000 | Source:
What’s Next For BTC? Is A Rally Inevitable?
The price of Bitcoin has always reacted to news regarding spot Bitcoin ETFs. Just news of applications from BlackRock, Fidelity, and other investment companies . Recently, rumors that the SEC had approved BlackRock’s ETF application sent the industry into a frenzy, and $74 million worth of BTC positions in just a few minutes.
There’s no denying the amount of capital a spot Bitcoin ETF would unlock for the crypto industry. If approved, a spot Bitcoin ETF could unlock a from institutional investors, from financial institutions.
According to , spot ETFs could push BTC to $150,000 or maybe even further by the end of next year.