“The potential approval of a Bitcoin ETF has sparked excitement among analysts, who predict that it could inject a staggering $1 trillion into the crypto market, igniting a new era of growth and adoption for digital currencies.”
Bitcoin’s market cap is expected to soar if spot exchange-traded funds (ETFs) are approved next year, according to a new report by CryptoQuant. The report suggests that the influx of institutional money into the market could push Bitcoin’s market cap to $900 billion, compared to its current value of $550 billion.
Additionally, CryptoQuant predicts that the entire crypto market cap could increase by $1 trillion as a result of the increased investment in digital assets. The report highlights the potential impact of spot ETFs, stating that the amount of money entering the Bitcoin market through these ETFs would surpass the inflow into the Grayscale Bitcoin Trust (GBTC) during the last bull market cycle.
Grayscale’s Trust, which is not currently registered with the SEC as securities, has been seeking approval to convert into a spot market Bitcoin ETF. After the SEC initially denied the application, Grayscale sued the SEC, and a judge ordered a review of the denial in August.
Market analysts now anticipate that the SEC will approve Grayscale’s application, as well as other pending ETF applications. Many major Wall Street players, including BlackRock, have applied for spot Bitcoin ETFs, indicating the high demand for such products among big investors.
Spot crypto ETFs provide investors with exposure to digital assets without the need to directly purchase and hold them. These financial vehicles are publicly traded and track the performance of an underlying asset or index. However, the SEC has been cautious in approving them, primarily due to concerns about market manipulation.
Despite the SEC’s previous hesitations, experts believe that it is only a matter of time before Wall Street obtains a Bitcoin ETF. BlackRock, Valkyrie Investments, Ark Invest, and VanEck are among the companies currently seeking approval. Bloomberg Intelligence analysts even predict a 90% chance of a Bitcoin ETF being available in the U.S. market by January 10.
In conclusion, the potential approval of spot ETFs next year could significantly boost Bitcoin’s market cap and propel the entire crypto market to new heights.