Spot bitcoin-ETFs will provide $30 billion in demand for the cryptocurrency

Spot bitcoin-ETFs will provide $30 billion in demand for the cryptocurrency

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Author: Robert Strickland (crypto-journalist)
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Spot bitcoin-ETFs will provide $30 billion in demand for the cryptocurrency
NYDIG analysts believe that spot bitcoin ETFs will generate $30 billion in demand for cryptocurrency
NYDIG analysts came to this conclusion after major management companies submitted applications to launch such funds

Spot exchange-traded bitcoin-ETFs can increase demand for BTC by up to $30 billion, according to an analytical report by trading company NYDIG.

The analysts came to this conclusion after major management companies, notably BlackRock and Fidelity, filed requests with the US Securities and Exchange Commission (SEC) to launch such funds.

"The brand recognition of BlackRock and iShares, established methods of buying and selling through securities brokers, and ease of risk measurement and tax reporting could all be advantages of a bitcoin-ETF over existing alternatives," the report said.

The company's analysts also drew an analogy between Bitcoin and gold. The share of gold ETFs in the world accounts for more than $210 billion of investments, of which about half - the share of North America. At the same time, only $28.8 billion is invested in Bitcoin funds, the analysts clarified.

"BTC is about 3.6 times more volatile, and in dollar terms, investors need 3.6 times less bitcoin than gold to get a similar degree of risk. But despite this situation, it will cause an increase in demand for bitcoin-ETFs by almost $30 billion," - experts suggest NYDIG.

In July, Bloomberg senior analyst Eric Balchunas said that the approval of applications to launch spot exchange-traded bitcoin funds (ETFs) in the United States will open the bitcoin market to $30 trillion in capital.

 

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