Bitcoin's value could skyrocket to become a $900 billion asset if bitcoin spot exchange-traded funds (ETFs) receive approval, says data analytics company CryptoQuant.
This move could push the entire crypto market's worth up by $1 trillion.
What are spot ETFs?
Spot ETFs track the real-time price of an asset, like bitcoin, and aim to replicate its spot market performance. Imagine them as mirrors: just as a mirror reflects your current appearance without delay, a Spot ETF mirrors the current market price of an asset, offering investors direct exposure to its immediate value.
In 2020-2021, institutional adoption primarily came from entities adding bitcoin to their portfolios. However, CryptoQuant predicts that the next major adoption surge might result from financial institutions offering bitcoin access to their clients through spot ETFs.
According to CryptoQuant, if the entities applying for bitcoin ETF listings allocate just 1% of their Assets Under Management (AUM) to these ETFs, about $155 billion could be injected into the bitcoin market. This figure is almost one-third of Bitcoin's present market cap, potentially elevating Bitcoin's price to a range between $50,000 and $73,000.
A recent spike in bitcoin's price to $30,000 was observed after a mistakenly published report by Cointelegraph claimed a bitcoin ETF had been approved.
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