Report Forecasts a Potential $50 Billion Bitcoin Inflow

The possibility of a Blackrock Bitcoin ETF approval has set the stage for an anticipated surge in Bitcoin's price. The recent Matrixport report suggests that the approval could drive Bitcoin to reach $42,000 conservatively or an even more staggering $56,000 if substantial market inflows of $50 billion materialize.

As per the study, GBTC (Grayscale Investments' Bitcoin Trust) has significantly outperformed Bitcoin, with a remarkable 167% year-to-date growth compared to Bitcoin's 71%. The net-asset-value (NAV) discount has shown some improvement, narrowing from -45% to -43% at the beginning of the year.

The report underscores the substantial potential of the 15,000-strong US registered investor advisor (RIA) community overseeing $5 trillion. Even a modest 1% allocation recommendation for Bitcoin from this group could result in a significant $50 billion inflow. 

Drawing a parallel with precious metals ETFs, the report estimates that 10-20% of these investors may consider diversifying their portfolios with a Bitcoin ETF, potentially adding $12-24 billion to the market.

Considering a potential $24 billion market cap increase for Tether acting as a proxy for ETF inflows, Bitcoin's price could reach $42,000. In the case of a larger influx of $50 billion (1% allocation from RIAs), the cryptocurrency might rally to $56,000, reflecting a bullish projection in the wake of the Black Rock Bitcoin ETF approval. Bitcoin is trading at $28,546, as of writing.