Journalist
Posted:
- Demand for Bitcoin could increase once the SEC approves a spot ETF.
- It may take a while before business organizations start fueling the BTC surge.
Discussions about a possible solution have been going on for much of the year Bitcoin [BTC] spot ETF approval. But contrary to what many market participants may have wished, the US SEC has repeatedly apologized for not giving the green light.
Regarding the development, James Butterfill, head of research at CoinShares, said issued a report. In the report, Butterfill revealed that the Bitcoin price could reach $141,000 after the possible approval.
If you are an avid follower of AMBCrypto’s updates, you would admit that Butterfill has been crucial in providing updates on the flow of investment funds related to Bitcoin and other cryptocurrencies.
The time, it’s different
Interestingly, the analyst had repeatedly mentioned in recent weeks how Bitcoin inflow have increased. Interestingly, CoinShares’ research head focused on the fund flow relationship with Bitcoin.
This model also played a major role in the $141,000 conclusion. To arrive at the price, Butterfill analyzed the Assets under Management (AuM) from 2018 to 2023.
He noted that:
“This year is unusual as ETP volumes have increased proportionately. This is due to Binance’s dramatic decline in volumes rather than an increase in ETP volumes. At least historically, as overall market volumes rise, so do ETP volumes, which involves a form of ‘sentiment matching’.
Source: CoinShares
From the chart shared above, it also appears that the report also highlights how Exchange-Traded Products (ETPs) in other countries rarely impact Bitcoin price action.
A Bitcoin ETP is a financial product that allows investors to gain exposure to BTC without holding the coin.
Over $100.00 or nothing
Regarding the change in the ETF’s effect on price, the analyst looked at the weekly fund flows. According to him, about $14.4 billion worth of investments have flown into Bitcoin recently.
So if the average allocation is compared to the Bitcoin price, BTC could reach $141,000.
However, the report admitted that it was difficult to determine the exact value. It also added an expected ETF approval impact on BTC depending on the fund flow model.
Source: CoinShares
On a Year-To-Date (YTD) basis, Bitcoin is up 119.27%. But the profit taking in the past seven days is drawn the price back to $36,440. This was the price at the time of writing.
In conclusion, the CoinShares report noted that it was uncertain about the level of demand for Bitcoin once a spot ETF was launched. The report also added that it could take some time before the company decided to invest, highlighting the following:
“Regulatory approval and industry adoption are slow issues due to Bitcoin’s perceived complexity. For this reason, it may take some time for companies and funds to build up their knowledge and confidence before deciding to invest.”
How many Worth 1,10,100 BTC today?
Meanwhile, it seemed the US SEC was determined to push back its decision on spot ETFs. If reported AMBCrypto has postponed a new round of applications.