Bitcoin Price To Surge 74% To $59K In First Year After Spot Bitcoin ETF Approvals, Galaxy Digital Says

Bitcoin price may surge 74.1% to more than $59K during the first year after spot Bitcoin ETFs (exchange-traded funds) are approved in the US, says crypto investment firm Galaxy Digital.

Inflows of $14 billion are likely in the first year, ramping up to $27 billion in the second year and $39 billion the year after, said research associate Charles Yu.

He sees Bitcoin price rising 6% in the first month before monthly gains are pared to about 3.7% by the last month of the first year.

Yu further predicts that the US Bitcoin ETF market size will grow to $26.5 trillion during the second year after an ETF launches, and increase to $39.6 trillion after the third year.

Besides ETF approvals, BTC’s rally in 2024 could also be driven by the halving event and the likelihood that interest rates will have peaked.

Bitcoin is up by 21% in the past week, driven higher by optimism over the approval of about a dozen applications for spot Bitcoin ETFs. While the Securities and Exchange Commission has yet to approve such a product, investors are increasingly optimistic that it is only a matter of time before it gives the green light.

Bitcoin To Post More Gains on Adoption

Yu said that his estimates for Bitcoin price are conservative and don not take into account the “second-order effects” of the approval of a spot Bitcoin ETF. If the approvals do causes ripple effects, such as ETF approvals in other global markets, the price will likely roar past his 74% estimate.

“In the near-term, we expect other global/international markets to follow the US in approving + offering similar Bitcoin ETF offerings to a wider population of investors,” Yu said.

The US wealth management industry is valued at about $48 trillion. Yu estimates that an ETF will help ease some of these institutional inflows into the market as fund managers increase their exposure to Bitcoin.

Also Read

  • BlackRock Spot Bitcoin ETF Listing That Fired Crypto Prices Higher On Tuesday Was Added In August As ”Standard Practice”
  • Crypto Products See Inflows For Fourth Week As Bitcoin Dominates, Ethereum Struggles
  • Crypto Fear and Greed Index Surges To Highest Since Bitcoin Hit $69K In November 2021

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