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