On October 23, 2023, BlackRock acquired a special license called “CUSIP,” which signifies the seriousness of the firm’s commitment toward Bitcoin ETF and other considerations related to seeding for ETF. The two pieces of positive news regarding the spot Bitcoin ETF that emerged in the past few days have clearly attracted substantial investors, resulting in a significant 10% surge in the price of Bitcoin.
Galaxy Digital predicts a 74% surge in Bitcoin price
According to the recent research from the crypto fund Galaxy Digital on Tuesday, October 24, 2023, the approval of spot Bitcoin ETF has the potential to attract investors. And predicts that the approval of a spot Bitcoin ETF could drive a 74% increase in the price of Bitcoin during the first year, taking into account the liquidity and price impact resulting from billions of dollars in investments.
Spot Bitcoin ETF seen as a superior investment product
In the first year following the issuance of the Bitcoin ETF, a minimum inflow of $14.4 billion could be observed in the cryptocurrency market.
Investors and institutions have come to realize that a spot Bitcoin ETF may represent a superior investment product compared to the current offerings by investment firms, including trusts and futures, as it holds a value exceeding $21 billion. Moreover, the research suggests that this inflow could significantly increase to $27 billion in the second year of ETF issuance and to $39 billion in the third year.
Currently, the total assets managed by banks amount to approximately $11 trillion, while broker-dealers oversee a substantial $27 trillion, and registered investment advisors (RIAs) manage over $9 trillion. Collectively, these figures total a massive $48.3 trillion.
Wealth management industry eyes potential opportunities
It is evident that the U.S. wealth management industry stands to gain substantial benefits following the approval of a spot Bitcoin ETF, with the potential for significant new investment opportunities, according to the findings of this research.
Given that this spot Bitcoin ETF application has been submitted by giant asset management firms, it would enable both experienced investors and beginners to invest directly in Bitcoin through a trusted partner. The demand for a spot Bitcoin ETF is exceptionally high, and even minor rumors related to Bitcoin ETFs have led to substantial price surges.