Crypto financial services provider, Matrixport, anticipates a significant Bitcoin (BTC) rally, potentially reaching $42K, driven by favorable macroeconomic factors and the possible approval of BlackRock’s Bitcoin ETF.
Matrixport’s recent report highlighted the stellar performance of Grayscale Investments’ Bitcoin Trust (GBTC) shares, which have surged by 167% year-to-date, outperforming Bitcoin’s own 71% growth.
The turning point, however, was BlackRock’s announcement of its Bitcoin ETF application on June 15, 2023. Matrixport noted that the US registered investor advisor (RIA) community, overseeing approximately $5 trillion, could significantly contribute to Bitcoin’s growth.
“Even a modest 1% allocation recommendation for Bitcoin would usher in around $50 billion in inflows,” stated Matrixport. This influx could potentially increase Bitcoin’s price to $42K, providing a conservative estimate.
The projections are made against the backdrop of growing optimism towards the launch of a spot Bitcoin ETF, following a US court ruling in favor of Ripple in a lawsuit brought by the SEC.
Analysts led by Nikolaos Panigirtzoglou at JPMorgan believe that the SEC may be compelled to approve multiple spot BTC ETF applications following Grayscale’s win. Despite the potential disruption and embarrassment for the SEC, the approval of pending spot bitcoin ETF applications appears more likely.
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