The waltz around Bitcoin ETF requests launched by BlackRock could soon reach its conclusion. In the meantime, projections about the effects of the possible approval of a Bitcoin ETF continue. For several experts, the outcome of this procedure should have more than positive impacts.
In short
- An approval of BlackRock’s Bitcoin ETF application could result in $150 billion being injected into the bitcoin market.
- According to expert Eric Balchunas, this financial windfall would come in part from the allocation of 0.5% of the $30,000 billion managed by wealth managers in the United States.
- Glassnode predicts strong institutional demand for Bitcoin, reinforcing its status and perception as a safe investment.
BlackRock’s possible Bitcoin ETF, beneficial for investors
Exchange-traded fund (ETF) expert Eric Balchunas recently spoke about the Bitcoin ETF application introduced by BlackRock. The specialist notably made a prediction on the financial impact that approval of the firm’s request could have.
The specialist is convinced that the successful completion of BlackRock’s procedure would lead to a staggering influx of capital. According to him, at least $150 billion would be injected into the bitcoin (BTC) market. This, over the next two years.
To arrive at this figure, Eric Balchunas relied on the current valuations of gold ETFs. Its analysis also includes all assets managed by wealth managers in the United States. These constitute a colossal amount of $30,000 billion.
For the expert, this amount is such that a tiny investment in BTC from these funds would have a gigantic impact. So, allocating 0.5% of these funds to bitcoin would result in an investment of at least $150 billion in the asset.
According to Eric Balchunas, this development could have another positive effect on bitcoin itself. Its status and perception among financial professionals could rise considerably.
This would make it a safe and advantageous asset for investors. A bit like the reputation that the IBM company had acquired among investors in the 1930s. They could not go wrong buying IBM shares. At the time, the company enjoyed solid financial health which guaranteed customer satisfaction.
Concurring opinions on the relevance of the BlackRock ETF
Eric Balchunas is not the only one expecting positive impacts from the possible approval of BlackRock’s Bitcoin ETF. Recently, crypto data provider Glassnode agreed.
For Glassnode, institutional investors could soon be fighting for access to just 5% of the total bitcoin supply. In this context, a skyrocketing valuation cannot be ruled out.
At the moment, this is not the case. Glassnode reports that over the past month, 95% of bitcoins in circulation have not appreciated in value. Even though the price of BTC increased by 0.28% in the last 24 hours to trade around $25,925.
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