ETF approval in the US would cause the price of Bitcoin (BTC) to more than double; The global cryptocurrency market could add $1 trillion in value
The global cryptocurrency market is waiting for the first to be approved ETF from Bitcoin (BTC) Spot from the United States. Proof of this was the rise in cryptocurrencies following the false news that the fund had already been approved by the SEC, the North American CVM.
But what impact would a spot BTC index fund (ETF) have on the market? The person who collected the data on this topic was CryptoQuant, a cryptocurrency research company.
A recent report stated that the global cryptocurrency market could reach a value of around $1 trillion and practically double in size, returning to the $2 trillion level of the 2021 bull market.
Source: Coin Market Cap.
The data is based on the period between 2020 and 2021, when institutional investors began investing heavily in Bitcoin.
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Discover the Bitcoin ETF and its impact on the cryptocurrency
The scenario is likely to repeat itself – after all, major investment managers and banks are submitting applications to the SEC to launch their own spot Bitcoin ETFs.
Another event that is likely to repeat itself is the rising price of Bitcoin. According to CryptoQuant, prices could reach levels between $50,000 and $73,000, more than double the current level, which is around $28,000.
This Thursday (19), Bitcoin is trading with an increase of 0.50% and is trading at $28,467.91.
To offer a spot Bitcoin ETF, the manager must have BTC in cash, like other traditional funds.
This demand for Bitcoin units could add $155 billion to the cryptocurrency’s market value, which currently stands at around $555 billion.
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Additionally, the study suggests that for every $1 of new money invested in Bitcoin, its market cap tends to increase by $3 to $5.
And money will come in…
One of the proposals that recently caused controversy is converting the Grayscale Bitcoin Trust (GBTC) fund into an ETF.
With assets under management of around $15.7 billion, it is the largest cryptocurrency fund in the world – and the entry of this amount into the market offers great opportunities to free BTC from the doldrums of the last few months.
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