Digital Assets: If Approved, A Spot Bitcoin ETF Could Suck In $70B (Glassnode)

November 27, 2023 | Digital Assets, News

“This significant infusion of new capital could have a considerable impact on Bitcoin’s market, potentially driving up its price.” – Glassnode report

Glassnode, a blockchain analytics firm, predicts a substantial influx of around $70 billion in new capital into Bitcoin if a Bitcoin Spot ETF receives approval. This analysis suggests a potential catalyst for a BTC price rally.

The estimation by Glassnode is based on the hypothesis that a significant portion of capital from traditional markets, such as stocks, bonds, and gold, could shift towards Bitcoin investments. The firm anticipates approximately $60.6 billion flowing into Bitcoin from combined stock and bond ETFs, along with an additional $9.9 billion from the gold market, resulting in a total potential new capital influx of around $70.5 billion.

This injection of fresh capital is expected to have a considerable impact on Bitcoin’s market, potentially driving up its price as it gains wider acceptance and becomes integrated into more traditional investment portfolios.(NEWSBTC)

Glassnode’s analysis extends to the influence of Spot Bitcoin ETF applications on Chicago Mercantile Exchange (CME) Bitcoin futures and various altcoins. The recent recovery in the crypto market is attributed to the anticipation of Spot Bitcoin ETF approval by the United States Securities and Exchange Commission (SEC).

The favorable outlook toward Spot Bitcoin ETFs has resulted in a notable uptick in Bitcoin futures open interest on CME, hitting a record high of 27.8%. Additionally, altcoins like Ethereum and Solana have encountered substantial increases in their prices, with Solana experiencing a surge of 79.05%, and Ethereum surpassing the $2,000 milestone.

As optimism spread about regulatory approvals for the inaugural Spot Bitcoin ETF, Bitcoin saw a surge beyond $37,000. Institutional involvement in open interest for Bitcoin call options also observed a substantial upswing, reaching $9.7 billion, marking an 80% increase and indicating a potential bullish trajectory for the evolving crypto market.

Related Story:  MicroStrategy Bumps Up Its Exposure To Bitcoin, Adds $347M

Image by 21saturday from Pixabay

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…