In recent research, digital asset manager CoinShares attempted to predict how the inflow of capital into Bitcoin-based exchange-traded funds (ETFs) in the United States might affect BTC price dynamics.
Bitcoin (BTC) might rocket to $265,000 post-ETF: Model by CoinShares
The Bitcoin (BTC) price might surge over $141,000 in the first 12 months upon the approval of Bitcoin Spot ETFs in the United States. This calculation is based on the Fund Flows Model published by CoinShares' Head of Research James Butterfill.
The model itself is based on a conservative assumption: per Galaxy's report, spot Bitcoin ETFs might be a $14.4 trillion market. Should only 10% of these funds' holders invest 1% of their wealth, the inflow into the segment would surpasses $14.4 billion.
This approach hints at a potential 300% rally for Bitcoin (BTC) that might be registered in the first 12 months after the Bitcoin ETF is greenlighted by the SEC:
If we take the aforementioned $14.4 billion of inflows, the model suggests it could push the price up to $141,000 per Bitcoin.
Then, an inflow of $31 billion into the segment might result in a further rally and bring the price of the largest cryptocurrency to the whopping $265,000 level.
As the same time, the authors of the forecast added that "it is very difficult to ascertain just how big the potential wall of demand will be once a spot-based ETF is launched."
CoinShares secures option to acquire Valkyrie's crypto ETF unit
CoinShares itself is a manager of $3.46 billion in AUM.
As covered by U.Today previously, almost all major U.S. asset management heavyweights submitted requests for Bitcoin Spot ETF approval to the SEC.
Some analysts are sure that at least one of these requests might be approved by the SEC by the end of 2024.
Yesterday, Nov. 16, 2023, CoinShares secured an exclusive option to acquire Valkyrie, a U.S. digital asset manager. The option is valid until March 31, 2024.
Alex Dovbnya
Yuri Molchan
