Binance is down but not Bitcoin nor other cryptocurrencies. On the contrary, a bullish trend emerges in this situation of panic felt at the level of centralized exchanges (CEX). This is manifested by the renewed value of certain assets, including bitcoin, andimminent approval of spot Bitcoin ETFs.
The $70 billion Bitcoin Spot ETFs
The SEC is reluctant to approve cash ETFs, which are too risky to the point of making investors vulnerable. And yet, these financial instruments arrive with a whole list of issues, including a large flow of money in the cryptocurrency market.
“ Glassnode reports that there is strong pent-up demand for spot Bitcoin ETF products, and that spot Bitcoin ETFs will receive up to $70.5 billion in inflows. More than 76% of bitcoin is currently held long-term, with supply recently hitting a multi-year low among active and short-term traders. »
The article attached in this tweet highlights a recent issue of Glassnode in which he highlighted Spot Bitcoin ETFs and their impact. The said report speaks of a very significant sales figure for this type of ETF: $70.5 billion.
Note this passage:
“ Based on these assumptions, we estimate that around $60.6 billion could flow into Bitcoin from the combined stock and bond ETFs, and around $9.99 billion from the gold market, totaling $70.5 billion in potential new capital inflows. This significant injection of new capital could have a considerable impact on the Bitcoin marketpotentially driving up its price as it becomes more widely accepted and integrated into more traditional investment portfolios. »
Furthermore, Glassnonde clarified that this is only an approximate figure, although it seems ” too optimistic “. However, it should be noted that $70 billion is akin to a drop in the ocean of ETFs in the United States, valued at $7 trillion.
Also note that Galaxy Digital has already spoken out on this subject. According to his analysis, spot Bitcoin ETFs will bring in around $14 billion in the first year. The following year, there will be $27 billion more, and $39 billion in the third year.
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