If one thinks of Bitcoin as the currency of the future, its increasing popularity and value undoubtedly prove that it is on the path to global domination. Galaxy Digital, a renowned investment firm, predicts a 74% increase in Bitcoin’s value within a year of the introduction of US ETFs based on this cryptocurrency.
For many investors, cryptocurrencies represent not only an opportunity to earn but also a reflection on the future of finance. Over recent years, Bitcoin, being the leading cryptocurrency in the world, has attracted the attention of not only individual enthusiasts but also large financial institutions. One of the key steps that could further strengthen Bitcoin’s position in the market is the introduction of ETFs based on this cryptocurrency.
Galaxy Digital, an investment firm specializing in cryptocurrencies, conducted an analysis of the impact of such funds on the value of Bitcoin. Their forecasts are optimistic – they predict a 74.1% increase in Bitcoin’s value within the first year after the introduction of these funds in the United States. How did the experts arrive at these conclusions?
Charles Yu, a researcher at Galaxy Digital, in his post dated October 24th, presented estimates concerning the Bitcoin-based ETF market. According to his calculations, the total value of such fund’s market will reach $14.4 trillion in the first year after introduction. Comparing the Bitcoin ETF market to the gold-based ETF market, the mentioned 74% was obtained.
According to Yu’s forecast, in the first month after the introduction of the ETF, Bitcoin’s value will rise by 6.2%, and then will gradually decrease, reaching a level of 3.7% monthly growth in the twelfth month.
Not only Galaxy Digital is optimistic about Bitcoin’s future. Markus Thielen, chief researcher at Matrixport, in his post dated October 19th, suggested that Bitcoin’s value might rise to a level between $42,000 and $56,000 if the American company BlackRock obtains permission to introduce its ETF based on this cryptocurrency.
It’s also worth noting that the introduction of ETFs may not be the only factor influencing the value of Bitcoin in the coming years. In 2024, the so-called “halving” of Bitcoin is expected, which means reducing rewards for cryptocurrency miners and can affect its value.
Although the future is unpredictable, it seems that the introduction of Bitcoin-based ETFs might be a significant step in the continued growth of this cryptocurrency’s value. We await the unfolding events and decisions of financial market regulators.
Photo by Kanchanara on Unsplash
