Analysts predict Approval of BTC ETF could bring in over $16 billion in funds

Experts Forecast $16 Billion Influx of Funds with Bitcoin ETF Approval

Compiled by: Blockchain Knight

In a recent report, analyst “Crypto Researcher” directly discusses the impact of BTC ETF on the prices of crypto assets. The potential introduction of this financial instrument has already had an impact on the emerging market, but this report predicts that once it is approved in the United States, there will be a huge shift in market balance.

According to the analyst, the spot BTC ETF proposal submitted by asset management company BlackRock will inevitably be approved by the SEC. As its CEO said, this asset management company is betting on the launch of this product.

Just yesterday, Larry Fink, a top executive at BlackRock, publicly defended BTC and crypto assets. This interview came at a time when there were rumors that the US regulatory agency approved the BTC ETF, but Fink and others stated that these rumors were not true.

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However, the CEO of BlackRock believes that this rebound is a signal that institutions are becoming increasingly interested in crypto assets. Fink believes that investors are “flocking” to BTC, a “high-quality” asset, which has contributed to this upward trend.

“Crypto Researcher” claims that in the case of the imminent launch of BTC ETF in the United States, crypto investors should pay attention to the amount of funds flowing into this product. For example, when BlackRock launched its iShares Gold ETF, the product absorbed $25 billion in market value.

The size of the gold ETF market is even larger, with holdings exceeding $85 billion. Since the launch of these financial products in the United States, the prices of related assets have skyrocketed to new highs.

The current macroeconomic situation is also another factor. The launch of BTC ETF may change this situation and push BTC into unknown territory. The analyst stated:

“A European economic recession is imminent, and US inflation seems to be under control. The printing press will eventually start again, which is the time for BTC to thrive. Regardless of your stance on the inflation/deflation issue, holding both may be a hedge worth considering.”

If this situation continues, the BTC ETF market may have an influx of over $16 billion. As shown in the figure below, the analyst uses Tether (USDT) as an alternative to measure the potential impact of these funds flowing in.

For every additional $2 billion of USDT inflow, the price of BTC will increase by 4%. In other words, if the ETF market injects $16 billion, BTC could surge to over $37,500.

Regarding yesterday’s speculation, the analyst states, “As the example shows, without an official statement from the SEC, BTC has risen 10% due to an unconfirmed news. In this case, the actual approval may have a more significant impact.”

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