Bitcoin is facing challenges in maintaining the $30,000 mark, but there is an increase in bullish sentiment due to optimism surrounding the potential approval of a spot Bitcoin ETF in the US. According to a report, if approved, the ETF could push Bitcoin’s price between $42,000 and $56,000.
So far, the US Securities and Exchange Commission (SEC) has not granted approval for a spot Bitcoin ETF despite numerous applications. However, Matrixport’s report speculates on the potential impact of BlackRock’s anticipated approval. The report compares Bitcoin ETFs to the $120 billion precious metals ETF industry, suggesting that even a modest percentage of investors diversifying into Bitcoin ETFs could result in billions of dollars flowing into the cryptocurrency.
Tether’s market cap, often seen as an indicator of potential ETF inflows, is crucial in this scenario. The report predicts that a $24 billion increase in Tether’s market cap could drive Bitcoin’s price to $42,000, while a larger influx of $50 billion, representing a 1% allocation from Registered Investment Advisors (RIAs), could propel Bitcoin to $56,000.
BlackRock, which submitted its application for a spot Bitcoin ETF on June 15, acknowledged the potential impact of RIAs. The company stated that even a modest 1% allocation recommendation for Bitcoin from these advisors could bring in around $50 billion in inflows.
In response to filings from competing firms, BlackRock submitted a revised version of its application, making changes to its risk disclosure. The company expanded the cautionary statement to include the potential impact of tumultuous events in the broader crypto industry on its share prices. It noted that the market is “unregulated” and “lacks transparency.”
Overall, the report suggests that the approval of a spot Bitcoin ETF, specifically BlackRock’s, could have a significant impact on Bitcoin’s price. While the $30,000 mark is proving challenging to maintain, the hopeful sentiment surrounding the potential approval is fueling optimism for a surge in price, potentially reaching $42,000 or even $56,000..
#Bitcoin #Set #Hit #BlackRock #ETF #Approval
So far, the US Securities and Exchange Commission (SEC) has not granted approval for a spot Bitcoin ETF despite numerous applications. However, Matrixport’s report speculates on the potential impact of BlackRock’s anticipated approval. The report compares Bitcoin ETFs to the $120 billion precious metals ETF industry, suggesting that even a modest percentage of investors diversifying into Bitcoin ETFs could result in billions of dollars flowing into the cryptocurrency.
Tether’s market cap, often seen as an indicator of potential ETF inflows, is crucial in this scenario. The report predicts that a $24 billion increase in Tether’s market cap could drive Bitcoin’s price to $42,000, while a larger influx of $50 billion, representing a 1% allocation from Registered Investment Advisors (RIAs), could propel Bitcoin to $56,000.
BlackRock, which submitted its application for a spot Bitcoin ETF on June 15, acknowledged the potential impact of RIAs. The company stated that even a modest 1% allocation recommendation for Bitcoin from these advisors could bring in around $50 billion in inflows.
In response to filings from competing firms, BlackRock submitted a revised version of its application, making changes to its risk disclosure. The company expanded the cautionary statement to include the potential impact of tumultuous events in the broader crypto industry on its share prices. It noted that the market is “unregulated” and “lacks transparency.”
Overall, the report suggests that the approval of a spot Bitcoin ETF, specifically BlackRock’s, could have a significant impact on Bitcoin’s price. While the $30,000 mark is proving challenging to maintain, the hopeful sentiment surrounding the potential approval is fueling optimism for a surge in price, potentially reaching $42,000 or even $56,000..
#Bitcoin #Set #Hit #BlackRock #ETF #Approval
