According to a recent research by Matrixport, the acceptance of BlackRock’s spot Bitcoin ETF may cause the price of the cryptocurrency to rise to between $42,000 and $56,000. Despite multiple applications, the US Securities and Exchange Commission (SEC) has not yet approved a spot Bitcoin ETF. The possible effects of BlackRock’s ETF clearance are compared in the analysis by Matrixport to the $120 billion precious metals ETF market. If 10–20% of holders of precious metal ETFs diversify their holdings by putting money into Bitcoin ETFs, $12–24% of that amount may be directed into cryptocurrency investment possibilities.
In this context, the market capitalization of Tether, which is frequently used as a proxy for anticipated ETF inflows, is essential. Bitcoin’s price could rise to $42,000 with a $24 billion increase in Tether’s market value, and it could reach $56,000 with a $50 billion increase, which would include a 1% allocation from Registered Investment Advisors (RIAs). On June 15, BlackRock submitted their application for a spot Bitcoin ETF; seven days later, the price of bitcoin increased by nearly 20%. On October 18th, BlackRock updated the risk disclosures linked to the potential impact of developments in the larger crypto industry on the share prices of the company. This was part of its S-1 application for a spot Bitcoin ETF.