A new report predicts up to $70 billion could pour into Bitcoin if a spot ETF is approved.
According to a recent report by on-chain data firm Glassnode, there is significant unmet demand from investors for a spot Bitcoin exchange-traded fund (ETF).
Glassnode estimates that up to $70 billion in new capital could flow into the Bitcoin market after the approval of a spot Bitcoin ETF. This projection is based on the assumption that 10% of money currently invested in major stock and bond ETFs would shift to a Bitcoin ETF, along with 5% of capital allocated to gold ETFs.
Source: Glassnode
The report points to diminishing Bitcoin supply available for trading to meet this potential demand surge. Glassnode data shows the percentage of the Bitcoin supply held by short-term investors recently hit multi-year lows. Meanwhile, the share of long-term Bitcoin holders reached all-time highs above 76% in October.
"The scarcity of readily tradable Bitcoin may amplify market volatility and price movements in response to the influx of ETF-driven capital," the Glassnode report concludes.
U.S. regulators have yet to approve a spot Bitcoin ETF. Approval could significantly expand access and demand for Bitcoin from institutional investors.
Glassnode suggests a spot Bitcoin ETF could have impacts comparable to the first U.S. gold ETF launched in 2003. In the decade that followed, gold prices rose over 400% amid greater investment demand.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
