In a recent interview with CoinTelegraph, Bloomberg's Senior ETF Analyst, Eric Balchunas, suggested that the pending approval of BlackRock (NYSE:BLK)'s Spot Bitcoin ETF could unlock a vast reservoir of up to $30 trillion, currently managed by financial advisors. The potential influx of capital is expected to propel Bitcoin's price to an all-time high of $150,000.
Balchunas explained that even if only 0.5% of the $30 trillion managed by financial advisors is allocated to Bitcoin, it would amount to a significant $150 billion investment. This could be a game-changer for digital currencies, attracting investors who have hitherto been reticent.
BlackRock, the world's largest asset manager, has been at the forefront of this movement, having already applied for a Bitcoin Spot ETF. This move has set the stage for other major industry players like Fidelity and Valkyrie to follow suit. Balchunas highlighted that these firms are not simply taking a shot in the dark but see a strategic path through existing regulatory frameworks. He further quantified BlackRock's influence on the odds of SEC approval, stating their involvement shifted the probability from an initial 1% to a substantial 50%.
However, despite this enthusiasm and potential for significant investment, the decision ultimately lies with the U.S. Securities and Exchange Commission (SEC). The SEC's approval or disapproval will either inhibit or unleash this potential massive wave of investment in Bitcoin.
Meanwhile, renowned crypto analyst Daan de Rover (Crypto Rover) has speculated that BlackRock could be deliberately driving down Bitcoin prices in order to secure a better buying position. Crypto Rover suggests that if BlackRock's Spot Bitcoin ETF gets approved, they would require actual Bitcoin to back their ETF. Therefore, lower prices now would mean greater value later if prices surge after approval.
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