BlackRock's ETF: Fueling Bitcoin's Price Surge to $150,000

Bombolo | News and Media

The cryptocurrency market is buzzing with excitement as institutional financial firms submit a surge of regulatory requests for spot bitcoin exchange-traded funds (ETFs). The implications of these requests have captured the attention of investors worldwide. In this article, we'll delve into the details and predictions surrounding this development.

Also Read: BlackRock's Bitcoin ETF Objectives: A Comprehensive Analysis

Unprecedented Interest in Bitcoin ETFs

The cryptocurrency landscape is undergoing a seismic shift, with institutional financial firms such as BlackRock, Fidelity, and ARK Invest making waves by submitting regulatory requests for spot bitcoin ETFs. The fervor surrounding these applications has ignited bullish speculation in the crypto market.

SEC's Crucial Role

The U.S. Securities and Exchange Commission (SEC) holds the key to the fate of these applications. As the SEC evaluates submissions from various financial giants, the industry is on the edge of its seat, anticipating at least one approval in the near future. The SEC's forthcoming decisions, scheduled for mid-October, are eagerly awaited.

Betting on BlackRock

Mark Yusko, the chief investment officer and managing director of hedge fund Morgan Creek Capital Management, is a prominent figure in this discussion. His prediction that BlackRock will be the first to receive approval has been a topic of much debate. Yusko's assertion carries significant weight in the industry, as he is known for his astute market insights.

Potential Monopoly in the Making

Yusko's belief in BlackRock's first-mover advantage extends beyond initial approval. He suggests that the approved product will likely dominate the market, attracting a lion's share of the $30 trillion managed by firms seeking exposure to bitcoin through regulated ETFs.

Also Read: BlackRock's Bitcoin Spot ETF: The $30 Trillion Game Changer for US Advisors

Unlocking Dormant Bitcoin

One intriguing aspect of this development is the vast amount of bitcoin locked in dormant wallets or held by long-term holders who are unlikely to sell. Yusko estimates the "free-float" bitcoin—readily available on the market—to be around $100 billion. The influx of institutional capital could reshape the market dynamics significantly.

Projecting the Impact

Yusko envisions that the approval of a bitcoin ETF, potentially by year-end, will pave the way for a massive influx of capital. Even a small percentage of the predicted $30 trillion—say, one-tenth of 1%—flowing into bitcoin amounts to a staggering $30 billion. This injection of funds into a market with limited available supply could trigger substantial price movements.

Adding to the bullish sentiment is the upcoming reward halving event in the bitcoin ecosystem. This event, where miners' rewards are halved, has historically led to significant price increases. Yusko suggests that while the effect of the next halving might be somewhat subdued, it could still drive the price of bitcoin to new heights, potentially reaching around $150,000.

Also Read: The Potential $150 Billion Boost: BlackRock's Bitcoin ETF and Its Impact on the Market