Bitcoin's Potential Price Explosion Hinges On BlackRock ETF Approval, Analysis Suggests

A new analysis points to a possibility that Bitcoin's (CRYPTO: BTC) price might see a jump to $56,000, provided the BlackRock Inc (NYSE: BLK) ETF receives approval.

The forecast by digital assets financial services platform Matrixport comes in the wake of BlackRock's announcement of its ETF application, which has generated considerable excitement in the cryptocurrency community.

Benzinga is set to further discuss the future of digital assets and the implications of such ETF approvals in the upcoming Future of Digital Assets conference on Nov. 14. This event is anticipated to gather experts from across the globe to share insights and predictions on the rapidly evolving digital currency landscape.

Grayscale Investments' Bitcoin Trust (OTC: GBTC)  share prices have seen an impressive surge of 167% year-to-date, overshadowing Bitcoin's growth of 71%.

The turning point in the market dynamics was Black Rock's ETF application announcement on June 15, 2023, according to Matrixport.

The crypto financial services platform added that the U.S. registered investor advisor (RIA) community, which comprises over 15,000 members and oversees an estimated $5 trillion, holds significant potential.

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Even a modest 1% allocation recommendation for Bitcoin from this group could result in approximately $50 billion in inflows.

Drawing comparisons with the market cap of precious metals ETFs, estimated at around $120 billion, if 10-20% of these investors consider diversifying into a Bitcoin ETF, this could translate to a whopping $12-24 billion influx.

If Tether's (CRYPTO: USDT) market cap sees an increase by $24 billion, mirroring the potential ETF inflows, Bitcoin's price could reach a conservative estimate of $42,000, according to Matrixport.

However, with an optimistic scenario of a $50 billion influx (1% allocation from RIAs), Matrixport stated that the rally could push Bitcoin to the anticipated $56,000 mark.

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