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Potential impact of a Bitcoin ETF on the price and inflows of funds in the US
According to a report by cvj.ch, the central question currently revolves around the potential inflow of funds into ETFs and the resulting impact on the Bitcoin price. According to analysis by Galaxy, there could be $14.4 trillion in addressable wealth in the United States. If about 10% of that is invested in a spot Bitcoin ETF, it could result in inflows of $14.4 billion in a first year. This would be the largest inflows in history, with the highest inflows so far seen in 2021 at $7.24 billion. According to an analysis, there is a relationship between the inflows...
Potential impact of a Bitcoin ETF on the price and inflows of funds in the US
According to a report by cvj.ch, the central question currently revolves around the potential inflow of funds into ETFs and the resulting impact on the Bitcoin price. According to analysis by Galaxy, there could be $14.4 trillion in addressable wealth in the United States. If about 10% of that is invested in a spot Bitcoin ETF, it could result in inflows of $14.4 billion in a first year. This would be the largest inflows in history, with the highest inflows so far seen in 2021 at $7.24 billion. According to an analysis, there is a relationship between inflows as a percentage of assets under management and the price change. The inflows appear to occur at the same time, i.e. h. the week in which prices rise, inflows also rise. During times when the price has gone into a tailspin, capital flows have also weakened, such as in 2019 and 2022.
Weekly ETP flows have been shown to be somewhat linked to a change in Bitcoin prices, and a trendline could be used to predict how the inflows would affect the price. If you take the $14.4 billion in inflows mentioned above, the price could rise to $141,000 per Bitcoin, according to the model. However, it is very difficult to determine exactly what the inflows will be when the spot ETFs are launched.
It is uncertain how large the potential demand wall will be once a spot-based ETF is launched. Regulatory approval and corporate acceptance have been slow to achieve due to Bitcoin's perceived complexity. So it could take some time for companies and funds to build up their knowledge and trust before deciding to invest.
Given this information, the launch of one or more Bitcoin ETFs in the US could have a major impact on the market. If the predicted inflows materialize, this could result in a significant increase in the price of Bitcoin. This could trigger strong demand for Bitcoin and change the overall market dynamics. However, it remains to be seen how the developments will actually occur and how market participants will react to them. The entire article is available at the following link: Articles about Bitcoin ETFs
Read the source article at cvj.ch