Matrixport: Bitcoin Will Reach $56,000 Following ETF Approval
Main page Opinion, Bitcoin-ETF
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Oct. 20, 2023

Matrixport analysts have said the SEC's approval for the launch of a spot Bitcoin ETF will pave the way for the cryptocurrency to soar to $42,000-56,000.

They have justified their forecast by referring to a likely influx of funds (between $24 billion and $50 billion) from regulated investment advisors (RIAs) in the United States.

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Notably, the industry employs 15,000 professionals who have been entrusted with $5 trillion in capital by clients, the report says. That $50 billion is equivalent to 1% of its assets under management.

The firm's analysts have drawn parallels with precious metals ETFs, valued at approximately $120 billion, assuming that at least 10% to 20% of this group would consider a BTC product to diversify the risks of a rise in inflation. As a result, this gives an estimate of the inflow of funds into the crypto market of between $12 billion and $24 billion.

The emergence of this amount in stablecoins after fiat currency conversion would result in Bitcoin reaching $42,000, a figure that would rise to $56,000 in the case of the allocation of 1% of the $50 billion of assets under management.

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