BlackRock’s Spot Bitcoin ETF Approval Could Propel Bitcoin To $56,000, Matrixport Says

Speculation is rife the SEC could approve the first U.S.-based spot bitcoin exchange-traded fund (ETF) in the coming months. According to crypto services provider Matrixport, the price of the benchmark crypto will likely move up rapidly to as high as $56,000 once approval of BlackRock’s ETF application happens.

Bitcoin Could Blast Off To $56K If BlackRock’s ETF Gets Approved

The Bitcoin price was rocked on Monday by a viral, erroneous report that a much-awaited spot Bitcoin ETF had received the nod from the U.S. Securities and Exchange Commission (SEC), causing the OG cryptocurrency to spike 10% to the $30,000 mark before quickly retracing to $28,000.

Now, Matrixport has revealed Bitcoin’s price could soar to between $42,000 and $56,000 should BlackRock’s spot Bitcoin ETF be approved. Matrixport expects some $12 billion to $24 billion worth of inflows to come into such an investment product if roughly 10-20% of precious metals ETF investors seek to diversify their investments into BTC.

“If Tether’s market cap increases by $24 billion, acting as a proxy for potential ETF inflows, Bitcoin’s price would rise to $42,000, representing a conservative estimate,” Matrixport posited in its Thursday report. “With a larger influx of $50 billion, Bitcoin could potentially rally to $56,000.”

The crypto financial services firm further notes that 15,000 U.S. registered investor advisors (RIA) oversee approximately $15 trillion, contending that even a modest 1% allocation recommendation for Bitcoin by this group would usher in at least $50 billion in inflows.

BlackRock Tweaks Bitcoin ETF Proposal

BlackRock took the giant leap toward a spot Bitcoin ETF under the title iShares Bitcoin Trust on June 15, paving the way for institutional capital to flood into the crypto asset. While it isn’t a guarantee we will see a Bitcoin spot ETF soon, it is looking more likely, especially with the pressure of multiple financial institutions coinciding with the momentum from Grayscale Investments’ and Ripple’s successful lawsuits.

BlackRock recently submitted an updated prospectus for its spot Bitcoin ETF filing with the SEC. Notable modifications in BlackRock’s new application include acknowledgement of the intense competition in the Bitcoin ETF approval race and detailed insights into the instrument’s pricing and reporting mechanisms.

Martin Bednall, former managing director at BlackRock, posited earlier this month that the SEC will likely approve all spot bitcoin ETF applications simultaneously.

The arrival of a spot ETF would arguably be a huge milestone for Bitcoin and the broader crypto industry.

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