Bitcoin: approval of an ETF could boost its price by 74% over one year

Wednesday, October 25, 2023

US investment firm Galaxy Digital has published a study assessing the impact of the forthcoming launch of Bitcoin Spot ETFs on the price of the cryptocurrency.

The question is no longer whether a "spot" Bitcoin ETF (which is based on real bitcoins in stock) will see the light of day on Wall Street, but rather when.

Most specialists anticipate a favourable decision from the US regulator on several dossiers - including BlackRock's - in the first quarter of 2024. As a reminder, the American is the largest asset manager on the planet (around $9,000 billion).

The other question on everyone's mind is: what impact will the arrival of these ETFs have? US investment firm Galaxy Digital published a detailed study on 24 October in which it attempts to put a figure on the potential increase.

In the first year, for example, Galaxy Digital forecasts an inflow of $14.4 billion via Bitcoin ETFs, which would lead bitcoin to appreciate by around 74% based on a closing price of $26,920 on 30 September.

With a strong following in the US market, Galaxy believes that demand for bitcoin could continue to grow significantly globally. By entering the category of traditional investment assets, Bitcoin could also be added to other investment vehicles such as hedge or thematic funds.

Galaxy thus estimates that Bitcoin's total potential contribution to all investment products would be between $125 billion and $450 billion over the long term.

This analysis is not investment advice. It has been prepared without taking into account your personal situation, particularly your financial situation, risk profile, and investment objectives.

Before investing in any product, investors should fully understand the risks involved and consult their own legal, tax, financial, and accounting advisors.

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