Skip to main content

Galaxy Expects Spot Bitcoin ETF to Push BTC Up by 74% in First Year

Galaxy Expects Spot Bitcoin ETF to Push BTC Up by 74% in First Year

A spot-based bitcoin exchange-traded fund (ETF) would attract significant capital and boost the price of BTC by 74% in the first year after launch, according to Galaxy Digital. The estimate comes amid rising anticipation that the U.S. securities regulator will approve one or more of the proposals that are currently under review.

Galaxy Digital Sees $39 Billion of Inflows by Third Year After Bitcoin ETF Launch

A spot bitcoin ETF will provide investors with direct exposure to bitcoin without the need to own the digital asset and an approval of the investment product, which comes with certain benefits over current options, will catalyze adoption, according to Galaxy Digital.

The investment company, one of the applicants to issue America’s first spot bitcoin ETF with a regulatory nod from the U.S. Securities and Exchange Commission (SEC), published an analysis sizing the market for an exchange-traded fund tracking the price of the leading cryptocurrency.

Galaxy believes that a spot bitcoin ETF will strongly impact adoption mainly due to two main factors – expanded accessibility across wealth segments and greater acceptance through formal recognition by regulatory bodies and trusted financial service providers.

Based on the results from its research, Galaxy Digital has estimated that $14 billion will flow into a bitcoin ETF in the first year following a launch. The total is projected to increase to $27 billion by the second year and $39 billion by the third year after that.

The author of the article, Galaxy’s research associate Charles Yu, also expects the price of bitcoin (BTC) to increase by 74% in the first year after an ETF approval. The estimate is based on the price of $26,920 per coin registered on Sept. 30, 2023. Bitcoin is trading at over $34,600 at the time of writing.

The SEC approved ETFs holding bitcoin futures in 2021 but the Commission has yet to greenlight a spot bitcoin ETF in the U.S. It has previously rejected proposals citing risks of fraud and market manipulation as well as concerns over custody and investor protection.

Earlier this year, the regulator accepted to review a number of applications, including that of Galaxy Digital which partnered with Invesco to compete with major financial firms such as Blackrock to launch one, but has since delayed its decisions on many of them.

“Anticipation that ETFs will be approved soon is rising, and our analysis suggests these products could see significant inflows, primarily driven by the wealth management channels that cannot currently access safe and efficient bitcoin exposure at scale,” Galaxy said in its blog post.

“Inflows from ETFs, market narratives about the forthcoming Bitcoin halving (April 2024), and the possibility that rates have peaked or will peak in the near term, all suggest that 2024 could be a big year for Bitcoin,” the crypto investment firm concluded.

Do you agree with Galaxy’s estimates about the impact of a spot bitcoin ETF on the crypto market? Tell us in the comments section below.



from Bitcoin News https://ift.tt/ihb5R2t
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more