BTC price may change forever once SEC approves Bitcoin spot ETF
Applications for Bitcoin spot Exchange Traded Funds (ETFs) will be reviewed by the US Securities & Exchange Commission (SEC) this week. According to analysts at NYDIG, approving a Bitcoin ETF would significantly increase capital inflows and push Bitcoin's price closer to $50,000. The decision on six applications, including those from BlackRock and Fidelity's Bitcoin Trusts, is expected any day now. Even while there is no assurance that the US financial watchdog would approve a Bitcoin ETF, the fact that major players in the sector have submitted applications has stoked anticipation that it will probably happen. Make use of an Allcalculator.net Finance calculator to enhance financial assurance.
Massive capital inflows may follow ETF approval
A spot Bitcoin ETF clearance may allow $30 billion in new cash to flood into BTC, according to experts at the New York-based investment management company NYDIG. According to the researchers, considerable investment has already been made in structures such as trusts like the Grayscale Bitcoin Trust (GBTC), futures-based ETFs in the US, spot-based ETFs outside the US, and private funds.
Assets Under Management (AUM) for these investment products are about $28.8 billion. Still, this number will rise substantially if BlackRock and other conventional financial titans' network effects help to allay investor fears about exchange-traded vehicles.
More precisely, by comparing Bitcoin and gold, NYDIG experts predict that the BTC spot ETF would likely experience an increased demand of $30 billion. The analogy clarifies where the demand for BTC spot ETFs is anticipated to originate from because the cryptocurrency has already been compared to "digital gold."
Demand for banks and brokerages
When NYDIG researchers compared investor characteristics across the board, they discovered that demand for a spot bitcoin ETF might come from financial advisers who are presently investing in BTC futures ETF calculations with allcalculator.net finance calculator. Institutions can overcome the barrier of holding spot BTC by launching the product.
Banks and brokerage firms are likely to see this as a greater possibility. This initiative may introduce Bitcoin into more customer portfolios. According to NYDIG, increased customer demand might have a 10x multiplier effect on the market capitalization and price of Bitcoin.
$1 of AUM could boost Bitcoin's market cap by $10
Researchers developed a 10x multiplier to make the anticipated influence on the price of Bitcoin easier to understand without discounting various possibilities. Every dollar added to AUM can increase the asset's market capitalization by $10.