CryptoQuant, the data analytics firm, has recently written in a report that if the exchange-traded funds get approved, then Bitcoin is going to be a 900 billion dollar asset, and the whole crypto market is going to grow by one trillion dollars.
The institutional adoption that came in 2020-2021 mostly came from institutions that added bitcoin to the balanced sheets, while in the next wave, it could be the financial institutions providing their clients with bitcoin access through spot ETFs.
The spot ETF inflow would be larger than the amount of money that entered GBTC or the Grayscale Bitcoin Trust in the previous bull market cycle. GBTC is the crypto fund that is largest in the world and is presently at $16.7 billion in assets under its management.
CryptoQuant is saying that if the companies that issue bitcoins have applied for listing bitcoin ETFs and agree to put 1% of the assets under management to these, then around 155 billion dollars would get access to enter the bitcoin market. This would represent almost one-third of Bitcoin’s present market capitalization. If this scenario actually happens, then it would push Bitcoin’s price somewhere between $50,000 to $73,000.
During the other bull markets, Bitcoin market capitalization has increased three to five times. This actually suggests that for every dollar that is entering the market, the capitalization could increase by three to five dollars.
Bitcoin recently jumped to $30,000 after the publication of a false report about the approval of a spot Bitcoin ETF. And according to a few observers, the frenzied bull price action would keep the bears at bay for the time being.