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 <p class="is-style-lead">As estimated by crypto investment firm Galaxy Digital, Bitcoin is projected to see a 74.1% <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> increase in the first year after the U.S. <a rel="noopener noreferrer nofollow" title="launch" href="https://thebittimes.com/tag/launch.html">launch</a> of spot Bitcoin ETFs.</p>
 <p>In a blog post dated Oct. 24, Charles Yu, a research associate at Galaxy Digital, projected that the total market size for Bitcoin ETFs could reach $14.4 trillion in their first year. He derived the 74% <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> increase estimate by comparing the potential impact of fund inflows into Bitcoin ETFs with that of gold ETFs.</p>
 <p>Galaxy Digital argues that ETFs could offer a more efficient investment vehicle than existing options like trusts and futures, which currently hold over $21 billion in value. The firm anticipates that fund inflows could increase to $27 billion in the second year and $39 billion by the third year.</p>
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 <h2 class="wp-block-heading" id="investor-accessibility-and-prospects">Investor accessibility and prospects</h2>
 <p>Launching Bitcoin ETFs could particularly benefit the U.S. wealth management industry, which Galaxy Digital identifies as the most direct market to gain from such a development.</p>
 <blockquote class="wp-block-quote">
  <p>“As of October 2023, assets managed by broker-dealers ($27 trillion), banks ($11 trillion) and RIAs ($9 trillion) collectively totaled $48.3 trillion.”</p> <cite>Galaxy Digital note on Bitcoin price</cite>
 </blockquote>
 <p>Spot Bitcoin ETFs could offer investors a more regulated way to gain exposure to Bitcoin. These products would likely partner with traditional financial institutions, ensuring strong customer protection and diverse investment offerings.</p>
 <p>Recent market reactions underscore the high demand for such investment vehicles. Last week, a mere rumor led to a 10% spike in Bitcoin <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a>s within hours. Similarly, the announcement of BlackRock’s proposed Bitcoin ETF led to a 12% gain.</p>
 <p>However, Galaxy Digital also pointed out the limitations of current investment products, such as high fees, low liquidity, and tracking errors. These issues make them less appealing to a broad investor base.</p>
 <p>A spot ETF could offer investors a way to gain direct exposure to Bitcoin without the need for self-custody and management of the asset.</p>
 <blockquote class="wp-block-quote">
  <p>“While fees haven’t been listed by bitcoin ETF applicants yet, ETFs generally offer lower fees than hedge funds or closed-end funds, and the high number of ETF applicants will likely aim to keep fees low to remain competitive.”</p> <cite>Galaxy Digital note on Bitcoin price</cite>
 </blockquote>
 <p>The U.S. Securities and Exchange Commission (SEC) reviews 12 spot Bitcoin ETF applications submitted by Grayscale, 21Shares &amp; Ark, BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Galaxy, Fidelity, Valkyrie, Global X, Hashdex, and Franklin.</p>
 <p>Despite this, Yu remains optimistic. He believes his estimates are conservative and do not account for the “second-order effects” that could follow the approval of a Bitcoin ETF. He expects other global markets to introduce similar offerings, further boosting Bitcoin’s appeal.</p>
 <p>Looking ahead, Yu suggests that 2024 could be a pivotal year for Bitcoin, citing potential ETF inflows, the upcoming Bitcoin halving in April 2024, and possible changes in interest rates as key factors that could influence its <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a>.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/galaxy-digital-predicts-74-surge-in-btc-price-after-spot-etf-launch-tbt67682.html">https://thebittimes.com/galaxy-digital-predicts-74-surge-in-btc-price-after-spot-etf-launch-tbt67682.html</a></p>

Galaxy Digital predicts 74% surge in BTC price after spot ETF launch

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