Most analysts are optimistic that the impending launch of spot bitcoin exchange-traded funds (ETFs) in the US could propel the currency to new heights, well above the $69,000 mark recorded in November. of 2021.
Andrew Kang, co-founder of Mechanism Capital, believe that bitcoin at $45,000 is still very undervalued. This is due to the expected influx of institutional investment from ETFs and the effort that issuers will put into marketing their products, aiming to rack up billions in fees in the coming months.
Learning about gold and looking for commissions
Kang points to gold ETFs, which hold more than $120 billion in assets under management (AUM) and generate approximately $720 million in annual fees for their issuers. ETF issuers will charge a management fee to cover the costs associated with operating the ETF, including coin custody and trading. Additionally, a fee will be charged through the bid-ask spread every time bitcoin is traded.
When trading and management fees add up, bitcoin issuers could generate billions of dollars annually, especially if trading volume is high. By Kang's estimate, bitcoin ETF issuers could generate between $10 billion and $20 billion in annual fees.
However, this is subject to dominance. After the Securities and Exchange Commission (SEC) approves multiple spot ETFs, issuers including BlackRock and Fidelity are expected to wage an aggressive battle for market share.
The goal of broadcasters is not only to ensure that the funds spent on advertising pay off, but that every dollar spent generates more in the future. This is critical because investors are less likely to switch once they choose an ETF, making early mastery crucial for long-term income generation.
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According to observers, issuers will promote bitcoin at every opportunity. That's why ChainlinkGod while responding According to Kang's post on
Looking at the price charts, bitcoin continues to rise and recently rose as high as $45,800, according to price data. At this rate, btc bulls extended 2023 gains. This will be when the community expects the SEC to approve the first bitcoin ETFs. Still, it's unclear when the agency will immediately greenlight this product.
btc has critical support around the $44,000 zone, marking 2023 highs. If the bulls sustain prices above this line, the chances of the coin rising to $50,000 in a buying trend continuation pattern are likely. will increase.
Featured image from Canva, TradingView chart
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
