Approval by the SEC on launching a spot Bitcoin-ETF ETF will lay the groundwork for Bitcoin to rise to $42,000–$56,000. Such estimates were issued by Matrixport analysts.
The Matrixport research pointed out that if the BlackRock Bitcoin ETF is approved, a conservative estimate is that the price of Bitcoin will rise to $42,000; an optimistic estimate is that with an inflow of $50 billion money, Bitcoin may rise to $56,000. https://t.co/Fr1zL6vHzO
— Wu Blockchain (@WuBlockchain) October 19, 2023
In support of its forecast, analysts pointed to an expected inflow of $24–$50 billion from registered investment advisers (RIAs) in the United States. This industry numbers 15,000 professionals, to whom clients entrusted capital in the amount of $5 trillion, the report states.
The Matrixport figure of $50 billion is equivalent to about 1% of their assets under management (AUM).
Drawing a parallel with ETFs on precious metals, which have a market capitalization of around $120 billion, analysts suggested that at least 10% to 20% of this group would consider a product based on digital gold to diversify inflation-related risks to growth. This yields an inflow estimate of $12–$24 billion into the crypto market.
An inflow of such an amount into stablecoins after fiat conversion would support Bitcoin rising to $42,000. If 1% of AUM ($50 billion) is allocated — to $56,000.
Earlier, QCP Capital analysts warned that Bitcoin is expected to fall by year-end, despite hopes for ETF approval.
According to CryptoQuant, if the product is registered, the cryptocurrency market capitalization would soar by $1 trillion. They also forecast Bitcoin’s price to reach $50,000–$73,000.
Former BlackRock director Steven Schoenfeld suggested that the SEC would approve the Bitcoin ETF within three to six months.