The decision on the spot Bitcoin Exchange-Traded Fund (ETF) is anticipated today, with predictions of a significant market impact. Several crypto experts foresee billions of dollars of inflows into the market following the approval. Standard Chartered Bank predicts a capital inflow between $50 billion to $100 billion in 2024.
Post-approval, it is estimated that between 437,000 and 1.32 million new BTCs will be held in US ETFs by the year-end. The price is also expected to surge, with the Bank targeting $100,000 by the end of this year and $200,000 by the end of 2025. This prediction is based on the performance of the gold exchange-traded product launched in 2004, which saw the price of gold increase by 4x within a seven-year maturity period.
Will McDonough, chairman and founder of Corestone Capital, believes the approval could increase Bitcoin demand, with around $1 billion worth of inflows expected by the end of the first quarter of this year. The approval of a 40 Act structure could also attract more investors to this growing alternative asset class. Galaxy Digital predicts that the first year of ETF issuance could attract $14.4 billion of inflows.
However, not all experts agree with these predictions. Some believe the capital inflows are exaggerated, making the ETF a sell-the-news event. Noelle Acheson, author of the ‘Crypto is Macro Now’ newsletter, commented that there are many uncertainties, making it difficult to predict. Several fake tweets created an impression of an upcoming approval, causing demand to rise and leading to a subsequent price surge. However, most investors exited their positions after realizing that most of the ETF tweets were just meant to create fake hype.
Roshun Patel, partner at Hack VC, also commented on this, stating that the impact on flows is hard to know down to the dollar today. It can really only surprise the upside. Dollars are infinite after all.
Bitcoin had an interesting run in the last three months as it surged by 71% to trade at $46,045.35. However, the asset has declined by 1.7% in the last 24 hours. The previous price surge was linked to the expectation that the US Securities and Exchange Commission could rule in favor of the asset managers. However, analysts believe that the slight fall in the past 24 hours could be that the ETF news is priced in.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Noelle Acheson, Will McDonough, Roshun Patel, nic carter |
| Companies | US Securities and Exchange Commission, Galaxy Digital, Hack VC, Corestone Capital, Standard Chartered Bank |
| Currencies | Bitcoin, US Dollar |
| Securities | None |
