[NEWS] Bitcoin spot ETF to rise 74% after trading begins, predicts Galaxy Digital

Cryptocurrency investment company Galaxy Digital announced on the 24th that it predicts that Bitcoin (BTC) prices could rise by 74% in the first year after a Bitcoin spot ETF begins trading in the United States.

According to a research note by Galaxy Digital, the launch of a Bitcoin spot ETF could see around $1.2 billion (approximately 180 billion yen) flow into the Bitcoin market each month, totalling $14.4 billion (approximately 21.6 trillion yen) in one year.

Galaxy Digital claims that the ETF is a more efficient investment product than existing options such as trusts and futures, which currently have a value of over $21 billion (approximately 31.5 trillion yen). The company also predicts that the amount of capital inflows into the Bitcoin market could increase to $27 billion (approximately 4 trillion yen) in the second year and $39 billion (approximately 5.85 trillion yen) in the third year.

It also said that a Bitcoin spot ETF will enable a wider range of investors to benefit, and that it is likely to partner with traditional financial institutions, which is expected to lead to a more diverse investment product with stronger customer protection.

The launch of a Bitcoin spot ETF is likely to bring many benefits to the U.S. asset management industry. Currently, the assets managed by the industry are $27 trillion (about 4,050 trillion yen), $11 trillion (about 1,650 trillion yen), and $9 trillion (about 1,350 trillion yen), totaling $48.3 trillion (about 7,245 trillion yen).

The recent reaction of the Bitcoin market shows the high demand for a Bitcoin spot ETF.

Last week, the news that BlackRock's Bitcoin spot ETF had been approved caused the price of Bitcoin to soar 10% in just a few hours. In addition, the stock price rose by 12% when it was revealed that the Bitcoin spot ETF "I Shares Bitcoin Trust" that BlackRock is applying to list was listed by the Depository Trust and Clearing Corporation (DTCC).

Galaxy Digital pointed out problems with current investment products such as high fees, low liquidity, and tracking errors. It said that ETFs are suitable for investors who want to access Bitcoin directly without owning and managing Bitcoin through self-custody, and that since there are many ETF applicants, it is likely that they will aim to keep fees low to remain competitive.

Currently, there are 12 Bitcoin ETFs under consideration by the U.S. Securities and Exchange Commission (SEC), which have been applied for by Grayscale, BlackRock, VanEck, Fidelity, and others.

Reference:Announcement
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