Spot Bitcoin ETFs Could Boost Demand for BTC by up to $30B, Analyst Says report trading company NYDIG, writes RBC Crypto.
Analysts came to this conclusion after the largest management companies, in particular, BlackRock and Fidelity, submitted requests to the US Securities and Exchange Commission (SEC) to launch such funds.
“The brand awareness of BlackRock and iShares, the already known methods of buying and selling through securities brokers, and the ease of risk measurement and tax reporting could all be advantages of Bitcoin ETFs over existing alternatives,” the report says.
Analysts of the company also drew an analogy between bitcoin and gold. The share of gold ETFs in the world accounts for over $210 billion of investments, of which about half is the share of North America. At the same time, only $28.8 billion was invested in bitcoin funds, analysts specified.
“BTC is approximately 3.6 times more volatile, and in dollar terms, investors need 3.6 times less bitcoin than gold to take on the same degree of risk. But, despite this situation, this will cause an increase in demand for bitcoin-ETF by almost $30 billion,” NYDIG experts suggest.
In July, Bloomberg Senior Analyst Eric Balciunas said that the approval of applications for the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States would open the Bitcoin market to $30 trillion in capital.
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