Bitcoin ETF Could Potentially Release $70 Billion in New Demand
**Glassnode: Bitcoin ETF To Unlock $70B in New Demand**
In a recent report by on-chain data firm Glassnode, it has been revealed that there is significant unmet demand from investors for a spot Bitcoin exchange-traded fund (ETF).
**New Demand for Bitcoin ETF**
According to Glassnode, up to $70 billion in new capital could flow into the Bitcoin market after the approval of a spot Bitcoin ETF. This projection is based on the assumption that 10% of money currently invested in major stock and bond ETFs would shift to a Bitcoin ETF, along with 5% of capital allocated to gold ETFs.
This potential demand surge could lead to significant market changes, as the report points to diminishing Bitcoin supply available for trading. Glassnode data shows the percentage of the Bitcoin supply held by short-term investors recently hit multi-year lows. Meanwhile, the share of long-term Bitcoin holders reached all-time highs above 76% in October. This scarcity of readily tradable Bitcoin may amplify market volatility and price movements in response to the influx of ETF-driven capital.
**Impact on Institutional Investors**
U.S. regulators have yet to approve a spot Bitcoin ETF, but the potential approval could significantly expand access and demand for Bitcoin from institutional investors. Glassnode suggests that a spot Bitcoin ETF could have impacts comparable to the first U.S. gold ETF launched in 2003. In the decade that followed, gold prices rose over 400% amid greater investment demand.
In conclusion, the approval of a spot Bitcoin ETF could unleash a tidal wave of new demand for Bitcoin, potentially leading to significant changes in the market. With institutional investors poised to enter the market in greater numbers, the demand for Bitcoin could skyrocket, bringing about a new era of investment in the cryptocurrency.
**Source: Glassnode**
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