Benzinga - Bitcoin (CRYPTO: BTC) is on the verge of blossoming into a $900 billion asset should the anticipated approval of spot exchange-traded funds (ETFs) come to fruition.
That's according to CoinDesk, citing data analytics firm CryptoQuant. The report also anticipates that the total crypto market will grow by $1 trillion if the Bitcoin spot ETFs are approved.
This surge in valuation, underpinned by the potential endorsement of spot ETFs by the U.S. Securities and Exchange Commission (SEC), comes at an opportune moment. The discourse at Benzinga's Future of Digital Assets conference on Nov. 14 is expected to explore the evolving facets of digital assets, mirroring the shift delineated by CryptoQuant regarding institutional adoption.
Forthcoming Wave
CryptoQuant posits that SEC approval would result in financial establishments extending Bitcoin accessibility to their clientele via spot ETFs.The U.S. is currently witnessing a flurry of applications from major financial institutions, seeking the green light to launch spot Bitcoin ETFs, with a prospective approval timeline stretching to March 2024.
The prospective capital influx steered by spot ETFs is projected to dwarf the funds funneled into the Grayscale Bitcoin Trust (OTC: GBTC) during the preceding bullish market cycle.
GBTC, overseen by the Digital Currency Group, stands as the globe's preeminent cryptocurrency fund. It boasts a hefty $16.7 billion in assets under management (AUM).
If the entities vying to enlist Bitcoin ETFs allocate a mere 1% of their AUM to these ETFs, it would translate to $155 billion potentially venturing into the Bitcoin sphere, constituting nearly a third of Bitcoin's current market valuation, CryptoQuant says.
Under this hypothetical framework, Bitcoin's price could catapult to a range of $50,000 to $73,000.
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