A $220 billion investment in Bitcoin exchange-traded funds over the next three years is the main reason why JMP Securities believes Bitcoin might reach $280,000.
willThis forecast is based on the most recent research report from the company. It predicts that spot Bitcoin ETFs would get an enormous $220 billion in investment over the next three years. This bodes well for Coinbase, as it demonstrates the increasing interest of investors in cryptocurrencies.
Spot Bitcoin ETFs have had an incredible voyage, with inflows reaching $10 billion two months after introduction, according to the JMP study. The experts claim that this enormous sum marks the beginning of a much broader pattern.
There will likely be a further acceleration of these inflows as a result of the ETF approval. Indeed, if the flood of institutional investments into Bitcoin keeps going, a “sell-side liquidity crisis” is going to happen, as pointed out by CryptoQuant CEO Ki Young Ju.
Until the influx of spot Bitcoin ETFs halts, the bears will not be able to win the game. The current pace will cause a liquidity crisis on the sell side within the next six months. “Once a sell-side liquidity crisis occurs, the next cyclical high may surpass our forecasts because of the low orderbook and restricted sell-side liquidity,” Ju added.
The possible multiplier impact of fresh cash on Bitcoin’s price is crucial to this hopeful view. A number of JMP experts, notably Devin Ryan, have speculated that a $220 billion influx may significantly increase the market capitalisation of the cryptocurrency, leading to a 280,000 dollar price for each bitcoin.
This forecast is based on the present-day multiplier of fresh capital being around 25X. Consequently, it implies a major effect on the whole market value of Bitcoin.
Interestingly, spot Bitcoin ETFs may be receiving more funding than conventional crypto platforms like exchanges, according to JPMorgan analyst Nikolaos Panigirtzoglou. That being said, he did concede that things may shift in the future.
Since the debut of the spot Bitcoin ETF, cryptocurrency exchanges have seen a total withdrawal of around $7 billion worth of Bitcoin. To rephrase, Panigirtzoglou said that the net flow from regular investors into the newly formed ETFs is more likely to be closer to $2 billion than $9 billion.
According to Panigirtzoglou, the market for spot Bitcoin exchange-traded funds will reach $62 billion in the next 2-3 years. After JMP Securities raised its price objective for COIN stock from $220 to $300, Coinbase is in a good position to take advantage of the expanding ETF industry.
