Bitcoin Could See A 165% Rise When The Spot ETFs Launch
Yesterday, fake news of the approved iShares Bitcoin spot ETF took the sector by storm, as all cryptocurrencies observed sharp rallies. At the peak of this surge, BTC had approached the $30,000 level.
However, when the market realized the truth about the announcement, the asset quickly retraced to the levels it was at before the rally. While the gains were only brief, the rally nonetheless provided a glimpse into the strong reaction that the market could see to the launch of a real ETF.The assets under management of the various companies waiting for ETF approval | Source:The above table shows information about the various companies waiting to be approved for the Bitcoin spot ETF, including the total size of their assets under management (AUM).
Now, how this capital inflow could affect the market cap of BTC isn’t exactly simple to say. Generally, the market cap increases by more than just the raw capital entering the cryptocurrency.
The comparison between the trends of the realized cap and market cap | Source:The graph shows that the market cap and realized cap usually have noticeably different growth rates, as they have always followed pretty different paths. CryptoQuant has calculated the ratio between the annual growths of the two caps and has found that for most of the asset’s history, the market cap has grown by 3 to 6 times faster than the realized cap. If the realized cap grows by $155 billion when the spot ETFs get approved and the asset managers allot 1% of their AUM to Bitcoin, the market cap could grow by between $450 and $900 billion. The report notes this figure implies “the market cap would increase between 82% and 165% from the current level and that Bitcoin price could reach between $50K and $73K as a result of these inflows of fresh money.”
BTC Price
Bitcoin has enjoyed some uptrend over the past few days as the asset has now climbed above the $28,500 level.BTC has seen some growth recently | Source: