{"id":31207,"date":"2023-10-19T19:52:36","date_gmt":"2023-10-19T23:52:36","guid":{"rendered":"https:\/\/cryptocornercafe.com\/cafe\/?p=31207"},"modified":"2023-10-19T19:52:36","modified_gmt":"2023-10-19T23:52:36","slug":"bitcoin-etf-approval-anticipated-to-trigger-fiat-influx-of-24-50-billion","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/10\/19\/bitcoin-etf-approval-anticipated-to-trigger-fiat-influx-of-24-50-billion\/","title":{"rendered":"Bitcoin ETF Approval Anticipated To Trigger Fiat Influx Of $24-50 Billion"},"content":{"rendered":"

In a recent report <\/a>released by Matrixport, a digital assets financial services platform, the spotlight shifts beyond Bitcoin (BTC) as the eagerly anticipated approval of a Bitcoin spot Exchange-Traded Fund<\/a> (ETF) by the US Securities and Exchange Commission (SEC) could have far-reaching effects.\u00a0<\/p>\n

According to the analysis, not only could the Bitcoin market experience a significant boost, but Tether <\/a>(USDT) and the broader crypto market could also see positive outcomes.<\/p>\n

Potential Impact On Bitcoin<\/h2>\n

Matrixport\u2019s foresight, outlined in their 2023 outlook report published on December 9, 2022, projected a substantial crypto rally <\/a>driven by factors such as lower US inflation and favorable macroeconomic conditions.\u00a0<\/p>\n

This projection anticipated strong rebounds for Bitcoin and Ethereum <\/a>(ETH), along with a notable decrease in volatility.<\/p>\n

Surrounding the approval of these pending applications, a standout performer in the market has been Grayscale <\/a>Investments\u2019 Bitcoin Trust (GBTC), with its share prices surging by an impressive 167% year-to-date, outpacing Bitcoin\u2019s 71% growth.\u00a0<\/p>\n

While GBTC\u2019s net-asset-value (NAV) discount marginally narrowed from -45% to -43% at the beginning of the year, the game-changing moment arrived when BlackRock announced its ETF application on June 15, 2023.<\/p>\n

Matrixport\u2019s earlier reports analyzed the US registered investor advisor (RIA) community, comprising approximately 15,000 advisors overseeing around $5 trillion.\u00a0<\/p>\n

Recognizing the potential of this group, the report suggests that even a modest 1% allocation recommendation for Bitcoin would result in approximately $50 billion in inflows<\/a>.\u00a0<\/p>\n

$56,000 BTC Price Projection<\/h2>\n

Drawing a parallel with precious metals ETFs <\/a>boasting an estimated $120 billion in market capitalization, and assuming that between 10-20% of precious metal ETF investors explore a Bitcoin ETF as a diversification tactic against monetary debasement and inflation hedges, the potential influx into the Bitcoin ETF could reach a significant $12-24 billion.<\/p>\n

The report speculates on the implications for Tether\u2019s market capitalization by looking at the potential impact of BlackRock\u2019s Bitcoin ETF approval.\u00a0<\/p>\n

Acting as a proxy for potential ETF inflows, a $24 billion increase in Tether\u2019s market cap could conservatively push Bitcoin\u2019s price to $42,000. With an even larger influx of $50 billion resulting from a 1% allocation by RIAs, Bitcoin could rally to $56,000.<\/p>\n

Overall, Matrixport\u2019s analysis sheds light on the potential ripple effects of Bitcoin ETF approval, extending beyond Bitcoin\u2019s immediate market and encompassing Tether and the wider cryptocurrency landscape.<\/p>\n

As market participants eagerly await regulatory decisions, the industry remains poised for potential growth and transformation.<\/p>\n

As of the time of writing, the leading cryptocurrency in the market, Bitcoin (BTC), is trading at $28,700, reflecting a 1.8% increase over the past 24 hours.<\/p>\n

It is worth noting that BTC has successfully maintained the gains it has made since mid-September. During this period, the cryptocurrency broke its short-term downtrend structure after reaching its peak for the year at $31,800 on July 13.<\/p>\n

Featured image from Shutterstock, chart from TradingView.com\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

In a recent report <\/a>released by Matrixport, a digital assets financial services platform, the spotlight shifts beyond Bitcoin (BTC) as the eagerly anticipated approval of a Bitcoin spot Exchange-Traded Fund<\/a> (ETF) by the US Securities and Exchange Commission (SEC) could have far-reaching effects.\u00a0<\/p>\n

According to the analysis, not only could the Bitcoin market experience a significant boost, but Tether <\/a>(USDT) and the broader crypto market could also see positive outcomes.<\/p>\n

Potential Impact On Bitcoin<\/h2>\n

Matrixport\u2019s foresight, outlined in their 2023 outlook report published on December 9, 2022, projected a substantial crypto rally <\/a>driven by factors such as lower US inflation and favorable macroeconomic conditions.\u00a0<\/p>\n

This projection anticipated strong rebounds for Bitcoin and Ethereum <\/a>(ETH), along with a notable decrease in volatility.<\/p>\n

Surrounding the approval of these pending applications, a standout performer in the market has been Grayscale <\/a>Investments\u2019 Bitcoin Trust (GBTC), with its share prices surging by an impressive 167% year-to-date, outpacing Bitcoin\u2019s 71% growth.\u00a0<\/p>\n

While GBTC\u2019s net-asset-value (NAV) discount marginally narrowed from -45% to -43% at the beginning of the year, the game-changing moment arrived when BlackRock announced its ETF application on June 15, 2023.<\/p>\n

Matrixport\u2019s earlier reports analyzed the US registered investor advisor (RIA) community, comprising approximately 15,000 advisors overseeing around $5 trillion.\u00a0<\/p>\n

Recognizing the potential of this group, the report suggests that even a modest 1% allocation recommendation for Bitcoin would result in approximately $50 billion in inflows<\/a>.\u00a0<\/p>\n

$56,000 BTC Price Projection<\/h2>\n

Drawing a parallel with precious metals ETFs <\/a>boasting an estimated $120 billion in market capitalization, and assuming that between 10-20% of precious metal ETF investors explore a Bitcoin ETF as a diversification tactic against monetary debasement and inflation hedges, the potential influx into the Bitcoin ETF could reach a significant $12-24 billion.<\/p>\n

The report speculates on the implications for Tether\u2019s market capitalization by looking at the potential impact of BlackRock\u2019s Bitcoin ETF approval.\u00a0<\/p>\n

Acting as a proxy for potential ETF inflows, a $24 billion increase in Tether\u2019s market cap could conservatively push Bitcoin\u2019s price to $42,000. With an even larger influx of $50 billion resulting from a 1% allocation by RIAs, Bitcoin could rally to $56,000.<\/p>\n

Overall, Matrixport\u2019s analysis sheds light on the potential ripple effects of Bitcoin ETF approval, extending beyond Bitcoin\u2019s immediate market and encompassing Tether and the wider cryptocurrency landscape.<\/p>\n

As market participants eagerly await regulatory decisions, the industry remains poised for potential growth and transformation.<\/p>\n

As of the time of writing, the leading cryptocurrency in the market, Bitcoin (BTC), is trading at $28,700, reflecting a 1.8% increase over the past 24 hours.<\/p>\n

It is worth noting that BTC has successfully maintained the gains it has made since mid-September. During this period, the cryptocurrency broke its short-term downtrend structure after reaching its peak for the year at $31,800 on July 13.<\/p>\n

Featured image from Shutterstock, chart from TradingView.com\u00a0<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-31207","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/31207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=31207"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/31207\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=31207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=31207"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=31207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}