The post Bitcoin Spot ETF: Crypto Research Firm Reveals What Will Happen In The First Three Years appeared on BitcoinEthereumNews.com.

The potential approval of a Spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) is expected to have significant effects on Bitcoin and the Spot Bitcoin ETF market. Addressing what investors can expect, the crypto research firm Galaxy Digital recently provided insights as to what could happen in the first three years upon the launch of this fund.  What To Expect In The First Three Years In a research paper released on October 24, Galaxy Digital’s research associate Charles Yu provided a vivid illustration of the heights a Spot Bitcoin ETF could attain in terms of market size and inflows in the first three years.  Source: Galaxy Research As to market size, Yu made his predictions on the addressable market size of a US Bitcoin ETF based on how they expect various wealth channels to adopt the fund. According to him, RIA (Registered Investment Advisor) will ramp up starting at 50% in the first year and increasing to 100% in the third year.  Meanwhile, broker-dealers and bank channels will ramp up at a slower pace, starting at 25% and increasing to 75% by the third year. If their assumption comes true, they estimate the market size to hit $14 trillion in the first year, $26 trillion in the second, and $39 trillion in the third year.  The firm’s estimates of inflows into the Bitcoin ETFs are based on their market size estimates. Going by this, they predict that these funds could see $14 billion of inflows in the first year, $27 billion by the second year, and up to $39 billion by the third year after launch.   Yu noted that factors such as a potential delay or denial of the pending Spot Bitcoin ETFs could affect their analysis. Other factors like poor price performance could also cause a…

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Filed under: News - @ October 25, 2023 7:26 pm