The SEC’s consent to the launch of a spot Bitcoin ETF will pave the way for an increase in the price of the first cryptocurrency to $42,000-56,000. Such estimates were given by Matrixport analysts.
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The Matrixport research pointed out that if the BlackRock Bitcoin ETF is approved, a conservative estimate is that the price of Bitcoin will rise to $42,000; an optimistic estimate is that with an inflow of $50 billion money, Bitcoin may rise to $56,000. https://t.co/Fr1zL6vHzO
— Wu Blockchain (@WuBlockchain) October 19, 2023
To justify their forecast, experts pointed to a likely influx of funds in the amount of $24-50 billion from regulated investment advisers (RIAs) in the United States. The industry employs 15,000 professionals to whom clients have entrusted $5 trillion in capital, the report says.
The $50 billion Matrixport mentioned is equivalent to 1% of their AUM.
Drawing a parallel with precious metals ETFs, which are valued at ~$120 billion, analysts assumed that at least 10% to 20% of this group would consider a digital gold product to diversify risks of rising inflation. This gives an estimate of the influx of funds into the cryptocurrency market in the amount of $12-24 billion
The appearance of such an amount in stablecoins after conversion from fiat will contribute to the growth of Bitcoin to $42,000. In the case of allocation of 1% of AUM ($50 billion) – to $56,000.
Let us remind you that QCP Capital analysts warned that Bitcoin will fall by the end of the year, contrary to hopes for ETF approval.
According to experts from CryptoQuant, if the product is registered, the capitalization of the cryptocurrency market will soar by $1 trillion. They also predicted an increase in the price of digital gold to $50,000-73,000.
Previously, ex-BlackRock director Stephen Schonfield suggested that the SEC would approve a Bitcoin ETF within three to six months.
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2023-10-19 14:32:42
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