Bitcoin Could Hit $56,000 with BlackRock ETF Approval, Predicts Matrixport


This article has been republished with permission from Binance News.

According to The Block: The price of Bitcoin may rise between $42,000 and $56,000 if BlackRock’s Bitcoin spot ETF gains approval from the US Securities and Exchange Commission (SEC), according to Matrixport. Matrixport has based this estimate from an analysis of 15,000 US registered investment advisors, foreseeing potential inflows of $12 billion to $24 billion into a Bitcoin ETF.

Using Tether’s market cap increase as a yardstick for potential ETF inflows, Matrixport has predicted Bitcoin’s price could reach $42,000 with a conservative $24 billion influx. At a larger $50 billion inflow, Bitcoin could potentially surge to $56,000.

Registered Investment Advisors (RIAs) oversee approximately $5 trillion, and Matrixport believes that a slight 1% allocation from this group could lead to an inflow of up to $50 billion. Drawing comparisons with precious metals ETFs, which are around $120 billion in market cap, Matrixport suggests that a 10-20% of precious metal ETF investors diversifying into a Bitcoin ETF could generate a significant $12–$24 billion inflow.

Concerning the approval process, BlackRock and other institutions, including Invesco, Valkyrie, and Fidelity, filed applications in June. The SEC initiated further proceedings last month to deliberate on these applications, which could result in a delay for at least another month.

However, a misreport about BlackRock’s spot ETF approval caused Bitcoin’s price to surge 5% to nearly $30,000 on October’s chaotic trading day. Martin Bednall, a former BlackRock executive, opined earlier this month, stating that the SEC would likely approve all spot Bitcoin ETF applications simultaneously.

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