Blockchain data analytics company CryptoQuant published a report this week stating that the cryptocurrency market could grow by $1 trillion with the arrival of spot Bitcoin ETFs in the US.
Currently valued at $1 trillion, this means the cryptocurrency market would double in size and reach $2 trillion. At its peak in November 2021, the market value of cryptocurrencies reached $3 trillion.
Last Monday (16), cryptocurrencies rose by 5% in a few minutes after the false news that the SEC had approved BlackRock’s ETF. In other figures, the market gained more than $52 billion before returning to previous levels with the verification of information.
Cryptocurrencies could double in value with the arrival of Bitcoin ETF in the US
While investors are only looking at Bitcoin, other cryptocurrencies could benefit from the approval of the first spot BTC ETF in the US. According to CryptoQuant, the sector could earn $1 trillion, doubling its value.
“We can expect approximately $150 billion to flow into Bitcoin once these ETFs are approved.”
“We say this based on the historical relationship between the total market value and the realized value of Bitcoin”continues the CryptoQuant report. “If $150 billion of new money enters the Bitcoin market, it could increase Bitcoin’s market value from $450 billion to $900 billion.”
Elsewhere, the report points out that many managers behind these orders are managing trillions of dollars. BlackRock is the largest of them, with $9.4 trillion, but Fidelity is also turning heads with its $4.5 trillion in assets under management. The same thing happens with Invesco & Galaxy with another $1.5 trillion.
“The total assets under management of these companies are almost $15.6 trillion. If they put 1% of that into Bitcoin ETFs, the injected value would reach $155 billion.”
The figures presented by CryptoQuant do not seem unrealistic. After all, Bitcoin was worth $1.3 trillion in 2021, becoming the asset that reached that number the fastest, leaving behind giants such as Apple, Microsoft and Google.
“The chart below shows the historical evolution of Bitcoin’s market value (in black) and realized value (in pink) since 2013 and shows that data for these metrics topped the charts in 2013, 2017 and 2021.”
Trading at $28,400, it is possible that investors are taking positions after last Monday’s high (16) after seeing the possible market reaction when the first Bitcoin ETF is actually approved by the SEC.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
