Do Bitcoin Spot ETFs Actually Trigger Institutional Adoption?

YEREVAN ( – Following the SEC’s approval of 11 Spot Bitcoin Exchange-Traded Funds (ETFs), Bloomberg has made a significant prediction about the initial trading day of these ETFs. They anticipate a massive $4 billion in total inflows, with BlackRock’s ETF potentially contributing $2 billion of that amount.

BlackRock Spot Bitcoin ETF Influx to Make History?

This prediction suggests that BlackRock could set a new record for first-day inflows into an investment product. Moreover, Bloomberg’s analysis extends beyond the first day, forecasting that these Spot Bitcoin ETFs could accumulate around $50 billion in assets within the first two years.

Bloomberg prediction of $4 billion fund influx
Bloomberg prediction of $4 billion fund influx. Source: X

The Spot Bitcoin ETFs, including offerings from major financial firms like Fidelity, Franklin Templeton, and BlackRock, are expected to have a profound impact on the cryptocurrency landscape. Experts believe that these funds may transform the way investors engage with Bitcoin, offering new levels of accessibility and exposure.

For example, Lucas Kiely, the chief investment officer at Yield App, viewed an approved Bitcoin ETF as a catalyst for institutional investment and a transformative era for crypto. The approved spot Bitcoin ETFs would offer a regulated and familiar investment vehicle for institutional investors, addressing their concerns about liquidity, custody, and regulatory uncertainty.

Eric Balchunas, an analyst at Bloomberg, emphasizes the potential impact of BlackRock’s application, noting that their participation changes the dynamics significantly, as they are a firm that likes to bring a strong competitive edge.

When [BlackRock] filed [for a spot Bitcoin ETF], it was a whole different ballgame in my opinion. The fact is they generally like to bring a gun to a knife fight. This is a firm who doesn’t like to lose, who knows what they’re doing, and they must see something [in Bitcoin].

Balchunas emphasized.

Bitcoin Price NOT Impressed

Despite the bullish spot Bitcoin ETF approval by the SEC, the BTC/USD exchange rate lolled at $46,000 on Jan 11, after a 1.6% intraday slide. Meanwhile, the price slide came after substantial liquidations the day prior.

Bitcoin spot ETF bitcoin price
Bitcoin price action. Source: TradingView

According to data from on-chain tracker Coinglass, on Jan 10, 2024, the Bitcoin market experienced significant volatility, leading to a substantial amount of liquidations. The price of Bitcoin rose to nearly $48,000 before falling back into the $45,000 range within a 24-hour period.

This price fluctuation resulted in $230 million in leveraged crypto positions being liquidated on centralized exchanges. The majority of these liquidations were long positions, totaling $140 million, while short positions accounted for $91 million in liquidations.

A false message about the approval of a spot Bitcoin ETF due to a security breach of the SEC’s official account possibly triggered the volatility.

However, given the magnitude of the expected fund influx. Bitcoin price could see a boost in the coming sessions. If the bullish prediction is correct, the target price for BTC would stand at a previous resistance of $52,000 by the week’s end, or another 13% higher than the current value.

The post Spot Bitcoin ETF Approvals to Bring in $4B – BTC Above $50K? appeared first on CoinChapter.