BlackRock spot bitcoin ETF approval could catapult BTC to $56,000 – Matrixport BlackRock spot bitcoin ETF approval could catapult BTC to $56,000 – Matrixport
A more conservative estimate by Matrixport projects that the top cryptocurrency's value could rise to $42,000.
2 min read
Updated: Oct. 19, 2023 at 7:45 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin’s (BTC) price could surge to as high as $56,000 if the U.S. Securities and Exchange Commission (SEC) approves BlackRock’s application for a spot exchange-traded fund (ETF), per an Oct. 19 research note by Matrixport shared with CryptoSlate.
The prediction is based on the projection that the U.S. registered investor advisor (RIA) community overseeing around $5 trillion in assets would allocate 1% of their holdings into BTC, which could usher in as much as $50 billion for the industry.
A more conservative estimate by the crypto platform predicted that the top cryptocurrency’s value could jump to $42,000 if the asset witnessed a sizeable inflow between $12 billion to $24 billion from 10-20% of precious metal ETF investors who are looking to diversify their portfolios through a Bitcoin ETF.
Bitcoin market cap to $900B: CryptoQuant
The prediction is coming on the heels of a similar one made by crypto analytics firm CryptoQuant, which wrote that a spot BTC ETF approval would push the market capitalization of the flagship asset to $900 billion. In comparison, the broader crypto market could grow by $1 trillion.
Per CryptoQuant’s prediction, BTC’s price might surge to a range of $50,000 to $73,000 if the ETF applicants allocate a mere 1% of their Assets Under Management (AUM) to these funds.
CryptoQuant argued that the influx of capital from spot ETFs could substantially surpass the capital inflow experienced by Grayscale’s Bitcoin Trust (GBTC) during the previous bull market. According to the firm, the initial stage of institutional adoption saw these firms integrate BTC into their balance sheets. However, the subsequent phase might involve financial institutions facilitating client access to the asset via spot ETFs.
‘Pent up demand’
These firms’ predictions align with the market reaction to a false report about a spot BTC approval. Following the news, BTC momentarily jumped to $30,000 before retracing to its current value.
BlackRock CEO Larry Fink said the market reaction was “an example of the pent-up interest in crypto” and evidence of a “flight to quality.”
This view was also shared by several market observers who believe that a spot BTC ETF approval would push the asset’s value to new highs.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
Markus Thielen is currently the Head of Research & Strategy at Matrixport, a one-stop digital assets financial services platform where users can invest, trade, and leverage crypto assets.