A new report from data analytics firm CryptoQuant says that the total cryptocurrency market will grow by $1 trillion U.S. if Bitcoin (BTC) spot exchange-traded funds (ETFs) are approved in America.
Several U.S. financial institutions have applied to launch spot Bitcoin ETFs in the U.S., with approvals potentially coming by March 2024.
CryptoQuant’s report says that if the issuers that have applied for spot Bitcoin ETFs put only 1% of their Assets Under Management (AUM) into the new ETFs, approximately $155 billion U.S. could enter the Bitcoin market.
That would represent almost one-third of Bitcoin's current market capitalization. Should that scenario play out, it would likely push Bitcoin's price to between $50,000 U.S. and $73,000 U.S., says CryptoQuant.
The price of Bitcoin recently jumped as high as $30,000 U.S. after a false report surfaced on the internet saying that a spot Bitcoin ETF had been approved in America.
CryptoQuant says other cryptocurrencies would likely benefit from the introduction of spot Bitcoin ETFs, potentially adding $1 trillion U.S. or more to the market capitalization of the entire sector for digital coins and tokens.
The price of Bitcoin has gained 70% year-to-date and currently trades at $28,500 U.S.
