Since the listing of Bitcoin spot ETF last month, the average daily trading volume of related ETFs has approached the trading volume of centralized exchanges. Garry Thewise, the product manager of CryptoQuant, stated today that once the trading volume of ETFs surpasses that of centralized exchanges, the impact of large institutions on the price of Bitcoin will be more significant.
The approval of Bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC) marks an important step for Bitcoin to move towards the mainstream. During this period, while Grayscale’s GBTC continued to experience outflows and reduced its holdings by 140,825 BTC, other 8 spot ETFs including BlackRock increased their holdings by 175,479 BTC, resulting in a net inflow of funds.
At the same time, Garry Thewise, the product manager of CryptoQuant, tweeted today that the trading volume of ETFs has already accounted for a considerable proportion compared to centralized exchanges. Once the trading volume of ETFs surpasses that of centralized exchanges, the impact of large institutions on the price of Bitcoin will be even more significant. Data shows that the total trading volume of 9 Bitcoin spot ETFs including ARKB, BITB, BRRR, BTCO, BTCW, EZBC, FBTC, GBTC, HODL, and IBIT reached $1.018 billion on the 2nd day. In comparison, the trading volume of Bitcoin spot on centralized exchanges was $1.4 billion.
According to Forbes, in the long term, Bitcoin ETFs may have a significant impact on the price of Bitcoin. The maximum supply of Bitcoin is 21 million coins, and currently, thousands of Bitcoins flow into ETFs daily, while only 900 BTC are mined. After the next halving of Bitcoin mining rewards, only 450 BTC can be mined daily. If the demand continues, the fixed supply of Bitcoin may make it more difficult to create new ETF shares, which means that ETFs may significantly influence the price of Bitcoin as they may need to directly purchase Bitcoin from exchanges.
The report mentioned that the impact of ETFs on the price of Bitcoin will last for months or even years, rather than hours or days. The market’s short-term expectations and enthusiasm for Bitcoin spot ETFs may be exaggerated, but the long-term impact may be severely underestimated.
Previously, Cathie Wood, the founder of Ark Invest known as the “Queen of Stocks,” boldly predicted that with the approval of Bitcoin spot ETF by the SEC, the fundamental price of Bitcoin would reach $600,000, and in a bull market, it could even reach $1.5 million by 2030. Tom Lee, the founder of Fundstrat and a well-known Bitcoin bull on Wall Street, predicted that the price of Bitcoin could surge to $100,000 or $150,000 within the next 12 months, and due to the deflationary nature of Bitcoin and the purchasing demand brought by ETFs, Bitcoin could even rise to $500,000 within the next 5 years.
Related reports:
– Daily Report on the Coin Market: BlackRock Spot ETF “IBIT” Surpasses GBTC in Daily Trading Volume, Bitcoin Soars to $43,400
– Will the Largest “JPMorgan Securities” Launch Bitcoin Spot ETF? With 30 Million Users and $7 Trillion Under Management
– Wall Street’s Resistance: Vanguard Prohibits Clients from Trading Bitcoin Spot ETF: BTC is an Immature Asset with No Intrinsic Economic Value