United

Galaxy

Bitcoin

Terra

Spot

<![CDATA[<figure class="image"><img src="https://cimg.co/news/126841/334915/bitcoin-etf-media-library.jpeg" srcset="https://cimg.co/news/126841/334915/responsive-images/bitcoin-etf-media-library___media_library_original_900_600.jpeg 900w, https://cimg.co/news/126841/334915/responsive-images/bitcoin-etf-media-library___media_library_original_720_480.jpeg 720w, https://cimg.co/news/126841/334915/responsive-images/bitcoin-etf-media-library___media_library_original_600_400.jpeg 600w, https://cimg.co/news/126841/334915/responsive-images/bitcoin-etf-media-library___media_library_original_300_200.jpeg 300w" width="900" class="content-img" alt=""><figcaption>Source: iStock/Photographer, Filmmaker, Designer</figcaption></figure>Cryptocurrency firm, Galaxy Digital views the approval of a spot Bitcoin (<a href="https://cryptonews.com/coins/bitcoin/">BTC</a>) ETF as &ldquo;the most impactful catalysts&rdquo; towards the growth and adoption of the top digital asset.&nbsp;In an Oct 24 <a href="https://www.galaxy.com/insights/research/sizing-the-market-for-a-bitcoin-etf/">market analysis</a>, Galaxy&rsquo;s research associate Charles Yu explained the possible effects of a spot BTC ETF in the United States as well as its significance in light of new market realities.The firm projects the growth of Bitcoin by 74% in the first year of an ETF approval which could see the price of the asset soar to $59,000 while marking a 6.1% increase in the first month.&nbsp;<blockquote>&ldquo;If we apply our year-one estimate of $14.4bn in inflows (~$1.2bn per month or ~$10.5bn on an adjusted-basis using our 8.8x multiplier) into the historical relationship between gold ETF fund flows &amp; change in gold price, we estimate a +6.2% price impact for BTC in the first month.&rdquo;&nbsp;</blockquote>Yu&rsquo;s predictions are not far-fetched as the run-up to an ETF approval has seen the price of the asset spike in anticipation. The price soared past $31,000 following <a href="https://cryptonews.com/news/crypto-community-divided-over-blackrocks-recent-bitcoin-etf-application.htm">BlackRock&rsquo;s application</a> to the Securities and Exchange Commission (SEC) as well as similar moves by Fidelity, Valkyrie, and other firms.Recently, Bitcoin also spiked above $35,000, a 16-month high still on the back of an imminent approval by the SEC.<h2 id="wider-impacts-on-adoption">Wider impacts on adoption</h2>The reports highlight the benefits of a spot BTC ETF approval on the market as well as for institutional investors which it described as the most accessible and direct market of the ETF.&nbsp;With the wealth management industry in the US at $48 trillion across banks, registered investment advisors, and brokers, Galaxy predicts huge growth because an ETF would create ease in pouring institutional funds into the market.<img src="https://cimg.co/news/126841/334916/d172c08e-6630-4e30-98cc-e.webp" srcset="https://cimg.co/news/126841/334916/responsive-images/d172c08e-6630-4e30-98cc-e___media_library_original_1020_493.webp 1020w, https://cimg.co/news/126841/334916/responsive-images/d172c08e-6630-4e30-98cc-e___media_library_original_900_435.webp 900w, https://cimg.co/news/126841/334916/responsive-images/d172c08e-6630-4e30-98cc-e___media_library_original_720_348.webp 720w, https://cimg.co/news/126841/334916/responsive-images/d172c08e-6630-4e30-98cc-e___media_library_original_600_290.webp 600w, https://cimg.co/news/126841/334916/responsive-images/d172c08e-6630-4e30-98cc-e___media_library_original_300_145.webp 300w" width="1020" class="content-img" alt="">Galaxy believes the RIA channel will grow by 50% in the first year and 100% in the next three years while banks and brokers will increase by 25% in the first year and 75% in the next three years.In total, the United States market size for a BTC ETF will soar to $14 trillion in the first year and $39 trillion by the third year.According to Wu, investments would extend beyond these asset ranges if international clients, other investment products, and retail services capture the estimate.&nbsp;<h2 id="effective-adoption-and-regulation">Effective adoption and regulation&nbsp;</h2>A Bitcoin spot ETF will open the market creating accessibility for institutional and retail players across wealth groups. The move takes the ball from wealth managers and expands it to RIA&rsquo;s, brokerage, and other fiduciaries.Furthermore, big corporations in traditional finance making applications for a spot ETF give the market a new wave of credibility driving proper regulation to the market.The crypto market has faced regulatory issues in the United States following the fall of the Terra ecosystem and the infamous <a href="https://cryptonews.com/news/crypto-prices-crash-as-ftx-crypto-exchange-collapses-what-we-know-so-far.htm">implosion of FTX</a>.&nbsp;
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Galaxy Digital Projects Bitcoin Price to Reach Near $60,000 Year After Spot ETF Approval

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