Crypto Market Could Grow by $1 Trillion on Spot Bitcoin ETF Approvals: CryptoQuant Report
A recent report from data analytics firm CryptoQuant suggests that the approval of spot Bitcoin exchange-traded funds (ETFs) could push Bitcoin's market capitalization to grow by $900 billion, with the total crypto market expanding by an additional $1 trillion.
CryptoQuant suggests that the next significant wave of institutional participation could come from financial institutions offering Bitcoin access to their clients through spot ETFs.
The report argued that the previous institutional adoption wave came in 2020-2021 when major institutions added Bitcoin to their balance sheets. So, this time around spot Bitcoin ETF approvals could trigger a similar push.
Several major financial institutions in the United States have already applied for regulatory permission to launch spot Bitcoin ETFs with the US SEC. These approvals could materialize by March 2024 at the latest, potentially marking a significant milestone in the cryptocurrency industry.
The potential inflow of funds resulting from spot ETF approvals is anticipated to surpass the capital inflow into the Grayscale Bitcoin Trust (GBTC) during the previous bull market cycle.
GBTC, the world's largest cryptocurrency fund with $16.7 billion in assets under management, is operated by the Digital Currency Group..
CryptoQuant’s report further suggests that if the issuers of these Bitcoin ETFs allocate just 1% of their Assets Under Management (AUM) to these funds, it could bring approximately $155 billion into the Bitcoin market.
This amount represents nearly a third of Bitcoin's existing market capitalization. Under this hypothetical scenario, Bitcoin's price could potentially surge to as much as $73,000.
Historically, during previous bull markets, Bitcoin's market capitalization
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