Blockchain analytics firm Glassnode has estimated a significant influx of investor demand following the approval of Bitcoin Spot ETF. The analysis shows that approximately $70 billion in new money is flowing into Bitcoin, potentially paving the way for a BTC price rally.
Bitcoin Spot ETF is ready to drive new inflows
Blockchain data and intelligence provider Glassnode recently did just that published research insights on the potential impact of Bitcoin Spot ETF approvals on the price of Bitcoin and the broader crypto market. The on-chain analytics company has predicted that approximately $70.5 billion will flow into Bitcoin due to increased demand from institutional investors.
Glassnode bases its analysis on the assumption that substantial parts of the capital in the sharesbonds, and gold market could shift to Bitcoin investments. The blockchain analytics company has stated that this influx of new capital could have a huge effect on the economy Bitcoin marketwhich may cause the price to rise to a higher level.
“Based on these assumptions, we estimate that approximately $60.6 billion could flow into Bitcoin from the combined stock and bond ETFs, and approximately $9.9 billion from the gold market, totaling approximately 70, $5 billion in potential new capital inflows,” Glassnode said.
It added:
“This significant influx of new capital could have a significant impact on the Bitcoin market, causing its price to rise as it becomes more widely accepted and integrated into more traditional investment portfolios.”
Bitcoin futures and altcoins are rising on the BTC ETF hype
Glassnode has expanded its analysis to explore how Discover Bitcoin ETF applications influence the Chicago Mercantile Exchange (CME) Bitcoin futures and various altcoins.
The blockchain analytics company has stated that the crypto market’s recent recovery has been driven by the surrounding anticipation of Spot Bitcoin ETF’s potential approval by the US Securities and Exchange Commission (SEC).
Bitcoin (BTC) is currently trading at $37.696. Chart: TradingView.com
“The market’s upward trajectory was largely driven by anticipation of the approval of Spot BTC ETFs, with market movements significantly influenced by updates on the filings of major financial entities such as Invesco and BlackRock,” Glassnode said.
The on-chain analytics firm revealed that growing optimism in Spot Bitcoin ETFs has led to a notable increase in Bitcoin futures on CME. According to the blockchain intelligence provider CME Bitcoin futures rose to an all-time high of 27.8%, surpassing Binance for the first time since the crypto bear market began.
Several other altcoins such as Ethereum and Solana also saw staggering price increases. Solana increased by 79.05%, and The price of Ethereum is currently above the $2000 mark.
The most notable increase, driven by the continued hype on Spot Bitcoin ETFs, was seen in Bitcoin. BTC rose above $37,000 as the optimism of regulatory approvals for the first Spot Bitcoin ETF spread.
Additionally, institutional open interest involvement in Bitcoin call options also increased by $4.3 billion, up 80% to above $9.7 billion. These recent spikes in investor demand and crypto prices have indicated a possible bullish trajectory for the maturing crypto market.
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