Why a Spot Bitcoin ETF Could Trigger a 66% Bull Rally
The Potential Impact of Spot Bitcoin ETFs
A spot Bitcoin exchange-traded fund (ETF) has the potential to attract significant investment and trigger a bull rally in the cryptocurrency market. According to K33 Research, a spot Bitcoin ETF approval could lead to a 66% increase in the price of Bitcoin, surpassing $42,000 within the first 100 days of its sanction.
This analysis is based on the inflow patterns observed for previous Bitcoin ETFs, such as ProShares Bitcoin Futures ETF (BITO) and Purpose BTC ETF (BTCC), after their debuts. The research suggests that the market underestimates the impact of a spot Bitcoin ETF approval, as substantial inflows tend to drive the price of Bitcoin higher.
Historical Patterns and Market Influence
Over the past four years, there has been a strong correlation between significant inflows into Bitcoin investment vehicles and an appreciation in Bitcoin prices. K33 Research predicts that a spot Bitcoin ETF approval in the US could attract over 30,000 BTC, worth nearly $1 billion, within the first 10 trading days. This influx of capital could potentially drive the price of Bitcoin towards $42,000 in just 100 days.
The Potential Surge in BTC Inflows
If the US Securities and Exchange Commission (SEC) approves spot Bitcoin ETFs, industry analysts anticipate a remarkable capital infusion into Bitcoin investment avenues. Vetle Lunde from K33 Research predicts a combined inflow of up to 100,000 BTC within a span of four months, both domestically and internationally.
Comparing the Canadian scenario, where the Purpose Bitcoin ETF attracted 11,141 BTC and other Canadian ETFs reached a total of 58,000 BTC in the first four months post-launch, Lunde highlights that the US market has a much larger scope. Therefore, the impact of spot Bitcoin ETF approval in the US is expected to be even more pronounced.
The Current State of Bitcoin Prices
Presently, Bitcoin is priced at $25,867, reflecting a 12.3% decrease over the past month. The postponement of the SEC’s verdict on seven Bitcoin ETF proposals has contributed to these price fluctuations. However, it is essential to note that these projections do not take into account other events that may influence the price of Bitcoin and the crypto market.
Editor Notes: Uber Crypto News
As we can see, the potential approval of a spot Bitcoin ETF could have a significant impact on the price of Bitcoin, leading to a potential bull rally. This news highlights the importance of staying updated with the latest developments in the cryptocurrency market.
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