**Crypto Expert Unveils Potential Catalyst for Bitcoin Price Surge**
In a riveting analysis, James Butterfill, the Head of Research at CoinShares, has shed light on critical elements that could potentially trigger a staggering surge in Bitcoin’s price. Butterfill’s extensive research revolves around the current market dynamics, particularly concerning the potential approval of Spot Bitcoin ETFs and the subsequent inflows that may ensue.
Using insights from Galaxy, Butterfill deduced that if 10% of the $14.4 trillion addressable assets within the US were to be allocated to Spot Bitcoin ETFs at a 1% allocation each, over $14.4 billion inflows would be imminent. If this prediction materializes, Butterfill emphasized that it would mark the most substantial influx ever witnessed in the financial markets.
“One could assume that perhaps 10% invest in a spot bitcoin ETF with an average allocation of 1%, which would equate to US$14.4 billion of inflows in the first year. If this were correct then it would be the largest inflows on record, with the largest so far being in 2021, which saw US$7.24 billion of inflows, representing 11.5% of assets under management (AuM),” Butterfill stated.
Moreover, Butterfill identified a distinct correlation between asset under management (AuM) inflows and price changes, suggesting that price surges align with corresponding increases in inflows.
“There does seem to be a relationship between inflows as a percentage of AuM and change in price. Inflows do appear to be coincident, the week the prices rise so do flows rather than one leading the other,” Butterfill said.
**Expert’s Bold Prediction**
In his comprehensive analysis, James Butterfill also boldly predicted that the price of Bitcoin could soar to as high as $141,000 if it is propelled by $14.4 billion inflows. However, he cautioned that accurately estimating the amount of inflows following the potential introduction of Spot Bitcoin ETFs remains a challenging task.
“If we take the aforementioned US$14.4 billion of inflows, the model suggests it could push the price up to US$141,000 per Bitcoin. The problem with the estimate of inflows is that it is very difficult to ascertain exactly how much inflows there will be when the spot ETFs are launched,” Butterfill stated.
Additionally, Butterfill acknowledged the uncertainties surrounding the demand for Spot Bitcoin ETFs after their potential approval, highlighting numerous regulatory and corporate variables that could significantly shape Bitcoin’s societal role.
“Ultimately, it is very difficult to ascertain just how big the potential wall of demand will be once a spot-based ETF is launched. We know that it effectively diversifies a portfolio and enhances Sharpe ratios, but regulatory approval and corporate acceptance are slow-burn issues due to Bitcoin’s perceived complexity,” Butterfill concluded.
The potential implications of these revelations on the Bitcoin market are profound, and market participants are keenly observing for any developments in this space. With Bitcoin’s price currently standing at $37,200, according to Tradingview.com, the prospect of a substantial surge looms large.
(Source: Bitcoin News | Chart from Tradingview.com)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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