- Bitcoin’s market cap could reach $900 billion in 2024 if the SEC approves spot crypto exchange-traded funds (ETFs), according to CryptoQuant.
- Institutional investment of 1-2% of assets could raise Bitcoin’s market cap from around $550 billion.
- Potential inflows from ETF approval would surpass Grayscale Bitcoin Trust’s holdings during the 2017–2018 bull run.
According to crypto data firm CryptoQuant, Bitcoin’s market capitalization could surge to $900 billion in 2024 if the SEC approves spot crypto exchange-traded funds (ETFs).
In a new report, CryptoQuant estimated that this influx of institutional investment, even if just 1-2% of assets are allocated, could boost BTC’s market cap from current levels of around $550 billion.
The analysis suggests total potential inflows dwarf what was seen with the Grayscale Bitcoin Trust during the 2017–2018 bull run. At its peak, Grayscale held over 3% of BTC’s circulating supply.
SEC yet to approve Grayscale Bitcoin ETF
Grayscale has applied to convert its popular Bitcoin fund into an ETF but has faced SEC rejection thus far. However, following a recent court order, the application will now be reviewed again.
Major financial players like BlackRock have also applied for spot Bitcoin ETFs, seeking to provide crypto exposure without direct ownership. Product launches remain contingent on SEC approval.
According to CryptoQuant, acceptance of just a few spot ETFs could bring up to $155 billion into BTC’s realized market cap alone. This would likely correspond with Bitcoin prices reaching $50,000 to $73,000.
While the SEC has been cautious regarding spot crypto ETFs, the potential impact highlighted by CryptoQuant underscores their significance as a catalyst for mainstream adoption. Even fractional institutional allocations could significantly expand market capacity.