U.Today - As asset management giants resubmitted their documents to the U.S. SEC, more and more analysts are treating the upcoming approval of the Bitcoin Spot ETF as a major bullish catalyst. Analyst Tom Dunleavy explains one more reason for Bitcoin (BTC) bulls to be optimistic.
$200-$400 million: "Price" of Bitcoin Spot ETF calculated by top analyst
The Bitcoin Spot ETF cannot be launched without a massive liquidity injection. Eight applicants, including BlackRock (NYSE:BLK), VanEck, Bitwise, Fidelity and so on, might be about to spend between $200 million and $400 million should their filings be approved.Such statements were shared by Dunleavy with his 10,000 Twitter followers yesterday, July 5, 2023.
These massive funds will be spent buying Bitcoin (BTC) on spot markets, he stressed. Even a massive $400 BTC spot purchase would only be the beginning as much more products will be revealed, he added.
This, in turn, will result in major moves of Bitcoin (BTC) prices on spot markets.
As per the Bitcoin Treasuries tracker, Bitcoin-friendly institutions currently hold over $50 billion in BTC, or over 7% of its available supply.
Bitcoin (BTC) defends $30,000 level from bears
Commenatators on Dunleavy's account recalled investment products that launched with $1 million in holdings. However, the analyst highlighted that every launch of ETF with under $25 million in AUM would be extremely surprising for him.As covered by U.Today previously, BlackRock sent another version of its application to the U.S. regulator.
This announcement immediatley pushed the BTC price over its yearly highs of $31,400. However, it dropped today to $28,800 and is now slowly recovering.