The prospect of spot Bitcoin ETFs has long been a dream for investors and traders alike. Amidst this anticipation, recent reports from esteemed data analytics platforms have set the crypto community abuzz, predicting a staggering $1 trillion market cap for crypto majors like Bitcoin, XRP, Ether, Solana, Cardano, and Shiba Inu if spot ETFs receive the green light.
A report, crafted by the experts at CryptoQuant delves into the historical context that has shaped Bitcoin’s market trajectory. The first wave of institutional adoption witnessed during Bitcoin’s historic bull run in 2021 saw institutions adding BTC to their balance sheets. According to CryptoQuant researchers, the next significant wave of adoption is already underway, marked by major Asset Under Management [AUM] entities making Bitcoin accessible to their clients through spot ETFs.
The only hurdle on this promising path seems to be approval from the US Securities and Exchange Commission [SEC], an obstacle that has kept the crypto community on edge. However, recent favourable court rulings in the GBTC and XRP lawsuits against the regulator have injected a newfound optimism into the market.
CryptoQuant’s experts have brought forth a compelling analysis that could fuel the already bullish sentiment in the crypto sphere. Historically, during bull markets, Bitcoin’s market cap has risen at a rate of 3–5 times higher than its realized cap. According to the report, for every $1 that pours into the Bitcoin network, its market cap could potentially surge by $3 to $5. If this pattern holds true and spot ETFs secure approval, Bitcoin’s price could skyrocket, reaching astronomical figures ranging between $50,000 and $73,000.
Recall how a false rumour of a spot Bitcoin ETF approval sent the crypto community to a tizzy as BTC soared. Although this incident serves as a cautionary tale, if the predicted scenario unfolds and spot ETFs are approved, the entire crypto landscape could enter a prolonged period of bullish momentum, where the bears might find it challenging to resist the rising tide.