CryptoQuant, a prominent data analytics firm, highlighted the potential of Bitcoin becoming a $900 billion asset if the Securities and Exchange Commission (SEC) approves spot exchange-traded funds (ETFs). The firm also predicts the overall crypto market could surge by an unprecedented $1 trillion. The report was released on Wednesday.
The forecast is based on the assumption that major U.S. financial institutions, which have already applied for the spot Bitcoin ETFs, could receive approvals by March 2024. If these institutions allocate just 1% of their assets under management (AUM) to Bitcoin ETFs, it would result in approximately $155 billion flowing into the Bitcoin market. This could potentially drive Bitcoin’s price between $50,000 and $73,000.
Historical data reveals that during previous bull markets, Bitcoin’s market cap expanded 3-5 times more than its realized capitalization. This indicates significant growth potential for the leading cryptocurrency.
Institutions initially added bitcoin to their balance sheets, with the next wave possibly coming from financial institutions offering bitcoin access via spot ETFs. Notably, GBTC, managed by the Digital Currency Group, is currently the world’s largest cryptocurrency fund.
