The firm believes that the approval of a spot bitcoin ETF in the United States will lead to an influx of more than $30 billion in the coming months.
The widespread adoption of bitcoin (btc) by institutional investors has warned the gold market of possible decoupling in the coming years. According to a report from Matrixport, bitcoin is about to bitcoin-is-better-than-digital-gold-matrixport” target=”_blank” rel=”nofollow noopener”>challenge Gold as a store of value for the simple fact that the former has surpassed the latter in recent years. Furthermore, demand for bitcoin has increased significantly in the past year despite the collapse of FTX and Alameda Research that wiped out more than $30 billion from the nascent industry.
Notably, more than 10 fund managers with a combined market capitalization of more than $17 trillion have petitioned the U.S. Securities and Exchange Commission (SEC) to offer spot bitcoin exchange-traded funds (ETFs). Interestingly, the SEC lost a case against Grayscale Investments for lack of sufficient evidence as to why the former was unable to convert its GBTC product into a spot bitcoin ETF. As a result, experts believe that the chances of a spot bitcoin ETF being approved in the next six months have increased exponentially.
Matrixport explains why bitcoin is better than gold
According to Matrixport, an all-in-one crypto financial services platform, bitcoin has a better chance of becoming the world’s store of value than gold in the coming years. Furthermore, bitcoin is a better cross-border asset compared to gold, requiring many regulatory requirements to facilitate similar services. Furthermore, bitcoin is more versatile and offers cheaper but high-quality services to all users without discrimination.
“Even today, storing assets in the form of gold has not only gone out of fashion in the digital age, but carries significant restrictions when crossing borders,” wrote Markus Thielen, head of research at Matrixport, adding that ” “bitcoin offers a solution to this dilemma.” , allowing rapid and relatively discrete movement of value across borders.”
bitcoin adoption by mainstream users has come under scrutiny from global regulators amid claims that different countries are using the digital asset to circumvent global sanctions. The ongoing war between Russia and Ukraine and recently between Israel and Gaza has significantly affected the global supply of oil and gas products.
Since bitcoin has higher volatility due to high speculation by global investors, Matrixport expects its market capitalization to surpass that of gold, which has unlimited supply.
“Therefore, considering the current state of technological developments, bitcoin‘s primary role is likely to be that of a gold-like store of value and a speculative financial asset,” the report adds.
Market Outlook and Price Action
The market value of bitcoin (btc) has fluctuated between $500 billion and $600 billion in recent months, but experts at Matrixport believe that more than $30 billion could flow into the bitcoin market after of the approval of a spot ETF. Currently, bitcoin price action is awaiting the halving event early next year to trigger a larger crypto bull run.
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