K33 Research predicts that spot Bitcoin exchange-traded funds (ETFs) will attract more than 30,000 BTC worth about $1 billion in the first 10 trading days. It is possible that this capital inflow could push the Bitcoin price above $42,000 within 100 days after approval.
Bitcoin price has the potential to increase by 66%!
The forecast is based on an analysis by Vetle Lunde, a veteran analyst at K33 Research. According to K33 Research, a green light for a spot Bitcoin ETF could catalyze a 66% bull rally. As a result, it could potentially push the BTC price towards $42,000 in its first 100 days.
K33 Research’s report underlines that the market has underestimated the profound impact a spot Bitcoin ETF approval could have on the crypto market in the US. Historical data highlights a strong connection between higher inflows and increased upward momentum. Commenting on this issue, Lunde says:
The market is wrong. Significantly underestimates the impact of US BTC ETFs (and ETH futures-based ETFs)… The odds for US spot ETF approval have never been better… I expect stronger inflows than both BITO and Purpose managed in their early trading days… Final In four years, a strong relationship has been observed between strong BTC investment instrument inflows and appreciated BTC prices.
BTC Projected Price. Source: K33 ResearchIt should be noted that these forecasts do not take into account BTC and other events that will affect the crypto market.
Fluctuation in BTC inflows on the horizon
Lunde thinks that the US Securities and Exchange Commission (SEC) approval for spot Bitcoin ETFs will set the stage for a significant capital infusion. He also predicts an inflow of up to 100,000 BTC into Bitcoin investment instruments in four months. Lunde draws attention to the Canadian scenario. The analyst notes that Canada’s Purpose Bitcoin ETF alone attracted an impressive 11,141 BTC. Along with other Canadian ETFs, it reached 58,000 BTC in the first four months post-launch.
Meanwhile, compared to Canada, the USA has a wider market scope. Therefore, the analyst emphasizes that US approval will witness an even more significant impact. In this regard, he makes the following statement:
BITO saw inflows of 19,425 BTC in the first ten trading days. BITO was launched without serious competition and gained a significant first mover advantage. Additionally, US futures-based ETFs have lower direct spot-based exposure due to rounding costs. This leads me to expect spot ETF inflows to increase in the US relative to BITO.
Where does bitcoin price stand right now
As you follow from Kriptokoin.com, BTC remained in a narrow range last week. Currently, BTC is trading at $25,867, with a price decline of 12.3% on a monthly basis. The leading crypto has been largely in the red since the SEC delayed its decision on seven Bitcoin ETF proposals.
BTC Price PerformanceAt this rate, Bitcoin is trading at levels seen before BlackRock’s announcement. That is, he lost the gains he made thanks to Ripple’s partial victory against the SEC and Grayscale’s favorable decision.
54177
