“The launch of spot ETFs could potentially unlock a $1 trillion surge in Bitcoin market cap, paving the way for a new era of mainstream adoption and investment opportunities in the crypto market, according to data analytics firm CryptoQuant.”
CryptoQuant, an on-chain analytics firm, has released a report suggesting that the market cap of Bitcoin could increase by up to $1 trillion following the launch of spot ETFs. This comes after a recent surge in BTC price caused by fake news of an approved iShares Bitcoin spot ETF. Although the gains were short-lived, it provided insight into the potential reaction of the market to the launch of a real ETF.
The report highlights several companies waiting for approval for the Bitcoin spot ETF, with a combined total of $15.6 trillion in assets under management (AUM). If even just 1% of this amount is allocated towards Bitcoin, it would result in a staggering $155 billion inflow for the asset. This represents almost a third of Bitcoin’s current market capitalization.
To assess the impact of this capital inflow on Bitcoin’s market cap, CryptoQuant uses the “realized cap” metric. The realized cap calculates the total value of BTC by assuming that each coin’s value is the same as its last transaction price on the blockchain. The report compares the realized cap with the market cap over the years, showing different growth rates for the two metrics.
Based on the historical data, CryptoQuant calculates that if the realized cap grows by $155 billion, the market cap could increase between $450 and $900 billion. This would translate to a growth of 82% to 165% from the current level, potentially pushing the Bitcoin price to between $50,000 and $73,000.
In recent days, Bitcoin has experienced an uptrend and surpassed the $28,500 level. However, it remains to be seen how the market will react to the launch of spot ETFs and whether it will lead to the predicted increase in market cap and Bitcoin price.
It’s important to note that this report provides insights and predictions based on historical data and assumptions. The cryptocurrency market is highly volatile and subject to various factors that can impact prices and market trends.