ETFs are attracting more and more capital. JP Morgan sees the capitalization of bitcoin quadrupling over the next two years.
JP Morgan sees $280,000 for a bitcoin
According to an analyst of the J.P. MorganBitcoin ETFs could suck up as much as $220 billion over the next three years.
Which means the price of BTC could quadruple to $280,000, the analyst said in a research paper published on Wednesday. All bitcoins would then weigh 5,500 billion dollars.
This figure would represent a little less than half of the capitalization of gold. Currently, bitcoin needs an increase of around 1000% to match it. Which won’t be too long if we are to believe Michael Saylor.
Blockstream CEO Adam Back said this Tuesday that we should already be at $100,000. Notably because the true ATH of bitcoin is now around $79,000 if we take inflation into account.
There is indeed a good chance that we will reach this famous $100,000 before the end of the year. Net inflows have indeed just exceeded one billion dollars for the first time.
Here is a graph putting into perspective the positive (green) and negative (red) net inflows into US ETFs:
Soon a market cap of $5.5 trillion?
ETFs now hold over 202,000 bitcoins. Knowing that this figure takes into account the massive outflows from the GBTC ETF. In other words, ETFs have actually already absorbed 432,000 bitcoins, or around $31 billion.
At a rate of $1 billion per business day, ETFs could suck up nearly $260 billion per year. Half, however, seems more realistic.
Added to this is the demand from millions of investors who do not use ETFs. The volume of bitcoin trading on Binance, for example, reaches $20 billion. This is twice as much as what we observe on American ETFs:
The JP Morgan analyst believes that “the capital inflows observed so far are probably only the tip of the iceberg”. For him, the approval of ETFs is only the beginning of a “longer capital allocation process”.
“If net inflows into ETFs reach $220 billion, applying our multiplier estimate of around 25 times, this alone could drive an increase in bitcoin’s market cap to $5.5 trillion, or 280,000 dollars for one bitcoin.”
More than a means of exchange, bitcoin is especially attractive as a store of value. Don’t miss our article: Mr. Saylor: “Bitcoin does not need to replace fiat currency.”
Maximize your Tremplin.io experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
