Can Bitcoin Spot ETFs Attract Enough Capital? Experts On What Will Lead To ATH
08 December 2023 - 1:00AM
NEWSBTC
Trading firm QCP Capital has shared its thoughts on what could
drive the flagship cryptocurrency, Bitcoin, to its all-time high
(ATH) of $69,000. From their analysis, Spot Bitcoin ETFs have a
huge role to play in all of this. Bitcoin Hitting $69,000
Dependent On Spot BTC ETFs QCP Capital stated that revisiting its
ATH of $69,000 will depend on the “genuine flows the actual ETF
will bring in the first few weeks of trading.” If the inflows are
below par, the trading firm noted that it could set things up for
the classic ‘sell-the-news’ moment. Related Reading: Crypto
Analyst Predicts Dogecoin Price Pump Of Epic Proportions To $0.7,
Here’s When This assumption seems to stem from their belief that
the news could already be priced in. They highlighted how Bitcoin
has so far enjoyed incredible gains on the back of optimism that
the SEC is going to approve these Spot Bitcoin ETFs. Bitcoin has
already risen to as high as $45,000 this month and is said to be up
15% MTD in the first week. With this in mind, QCP Capital is
conscious of the fact that investors are most likely already
positioned for an approval order by the SEC. If that is the case,
Bitcoin and the broader crypto market will need something else to
sustain this bullish momentum. That is why the trading firm has
singled out liquidity flowing into these Spot Bitcoin ETFs as being
key. Renowned Economist Peter Schiff had previously warned of a
possible sell-the-news event when he mentioned that Bitcoin is
unlikely to rally again once a Spot BTC ETF is approved. That is
because he believes that the current Bitcoin rally is a result of
many already ‘buying the rumor.’ As such, once approval comes, the
next thing could be these ‘investors selling the news.’ BTC price
recovers from flash crash | Source: BTCUSD on Tradingview.com
Capital Expected To Flow Into These Spot BTC ETFs There is reason
to believe that enough liquidity will flow into these Spot Bitcoin
ETFs and the Bitcoin ecosystem to sustain the current market rally.
Crypto research firm Galaxy Digital once published a report that
stated that these funds could see $14 billion of inflows in the
first year of launch. Related Reading: Crypto Expert Delivers
Top 8 Altcoins To Buy On Binance Specifically, Galaxy Digital
estimates that these funds will see an adjusted inflow of over $10
billion in their first month. These inflows should be enough to
sustain Bitcoin’s rally as the research firm projects that
Bitcoin’s price could see a 74.1% increase in the first year of
these funds launching. Meanwhile, Blockchain analytics firm
Glassnode is of the opinion that an approval order by the SEC will
bring in a substantial influx of investors. They predict that about
$70.5 billion could flow into Bitcoin due to increased demand from
institutional investors. Featured image from Easy Crypto, chart
from Tradingview.com
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