A new Matrixport Research says Bitcoin (BTC) could make a conservative jump to $42,000 and a bull-case rise to $56,000 if BlackRock’s Bitcoin spot ETF application bags approval.
In the report, Matrixport highlighted that the Bitcoin spot ETF approval might trigger about 15,000 registered brokers operating in the US. This investor group is important, considering their large capital base worth about $5 trillion.
BlackRock Bitcoin Spot ETF Impact
According to Matrixport, investors might use Tether as a proxy for potential ETF inflows. The report noted that if the USDT market cap grows by $24 billion, Bitcoin might jump to $42,000.
The report noted that a higher inflow of $50 billion, representing about 1% of the Assets Under Management by these brokers, might fuel Bitcoin’s push to $56,000. There’s growing interest surrounding Bitcoin when compared to Ethereum, as highlighted in the report’s exhibit.
While Bitcoin has recorded a massive 72% growth, Year-to-Date (YTD), Ethereum (ETH) has managed a 30.41% surge within a similar timespan. This growth indicates sustained interest in the asset from institutional investors, which might complement the approval of BlackRock’s Bitcoin spot ETF.
Matrixport has maintained an optimistic outlook on Bitcoin since the start of the year. In earlier reports, Matrixport predicted that improving macroeconomic conditions and lower US inflation can drive the price of Bitcoin higher, and the current price outlook indicates its forecast remains validated to date.
Bitcoin Spot ETF Approval is Close
The crypto market is growing apprehensive concerning the potential approval of a spot Bitcoin ETF from the United States Securities and Exchange Commission (SEC). The market got triggered earlier this week with fake news featuring the approval of BlackRock’s iShares spot Bitcoin ETF.
The reaction to this news has confirmed the heightened appetite for the product and its potential to usher in more institutional investors into Bitcoin. With about eight active spot Bitcoin ETF applications before the SEC, market analyst Scott Melker believes the regulator’s language and tone concerning the product has changed to that of “approval.”
From Melker’s optimism to related industry events, the general hope is that approval from the SEC is closer than expected.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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