crypto financial services platform Matrixport has predicted that the approval of a spot bitcoin ETF by the US Securities and Exchange Commission (SEC) could boost the price of bitcoin between $42,000 and $56,000 per unit.
btc, the largest cryptocurrency in the world, has experienced notable increases in value throughout this week, with the aim of exceeding the important threshold of $30,000. The cryptocurrency has been influenced by the operations of a bitcoin-etf-prospectus-sec/” rel=”nofollow”>bitcoin Spot Exchange Traded Fund (ETF) While investors continue to wait for approval to add institutional and general exposure to the digital asset.
bitcoin heads to $56,000
Matrixport performed an analysis on their newly released reportexamining the potential effects of a spot bitcoin exchange-traded fund (ETF) on the crypto-winter-over-morgan-stanley-april-2024/” rel=”nofollow”>cryptocurrency market, with a specific focus on btc. Applications for these investment vehicles have gained momentum in recent months and many are now awaiting the green light from the SEC.
The report draws a close parallel to the $120 billion precious metals ETF industry. If just 10% to 20% of precious metals ETF investors diversified their holdings into bitcoin ETFs, there would be an influx of between $12 billion and $24 billion into these investment vehicles.
According to Matrixport, an approval, in particular an application for BlackRock’s bitcoin ETF, would see the leading stablecoin USDT rise up to $50 billion in market capitalization. This, in turn, would lead to the price of bitcoin rising to $56,000, with Tether acting as an intermediary facilitating the entry of investments into btc.
“Our previous reports analyzed the US community of 15,000 registered investor advisors (RIAs) overseeing around $5 trillion. “This pool has immense potential, and even a modest 1% allocation recommendation to bitcoin would generate around $50 billion in inflows,” the report says.
A smaller influx of $24 billion into Tether would see btc rise to $42,000 in the near term. With btc currently trading at $29,370 with a market capitalization of $625.03 billion, this represents an increase of 90% and 43% in both scenarios.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/10/Matrixport-Says-Bitcoin-Headed-To-56000-Heres-The-Driver" alt="Tradingview.com bitcoin Price Chart” width=”2670″ height=”1746″ loading=”lazy”/>
btc readies to break $30,000 | Source: BTCUSD on Tradingview.com
What’s next for btc? Is a demonstration inevitable?
bitcoin price has always reacted to news about bitcoin spot ETFs. Only news of applications from BlackRock, Fidelity and other investment companies bitcoin-etf/” rel=”nofollow”>sent btc on the rise. Recently, rumors That the SEC had approved BlackRock’s ETF application sparked a frenzy in the industry and $74 million in btc positions bitcoin-etf-approval-liquidated-74-million/” rel=”nofollow”>were liquidated in just a few minutes.
There is no denying the amount of capital that a spot bitcoin ETF would unlock for the crypto industry. If approved, a bitcoin spot ETF could unlock a bitcoin-is-closer-to-1-million/” rel=”nofollow”>massive capital inflow from institutional investors, bitcoin-could-see-influx-of-17-7-trillion/” rel=”nofollow”>up to 17.7 billion dollars of financial institutions.
According bitcoin-price-jump-500/#:~:text=bitcoin%20Price%20Could%20Jump%20500%25&text=%E2%80%9CIf%20the%20spot%20Bitcoin%20gets,like%20%24180%2C000%2C%E2%80%9D%20Lee%20said.” rel=”nofollow”>Tom Lee, co-founder of FundstratSpot ETFs could take btc to $150,000 or maybe even higher by the end of next year.
Featured image from Forkast News, chart from Tradingview.com
