BTC
by BSCN
October 19, 2023
The report attributes this surge to the projected influx of $50 billion into the market, driven by factors such as lower US inflation and favorable macroeconomic conditions.
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.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].
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