The group of researchers of the digital assets market came to the conclusion that the emergence of a bitcoin ETF will help to increase Bitcoin price up to $44.000. This is reported by NewsBTC.
Bitcoin and institutional investors
Ari Paul, a well-known investor and co-founder of BlockTower’s hedge fund, said that the next bitcoin price hike will be initiated by institutional investors. This will happen before the end of 2018.
According to Paul, the main barrier that prevents the entry of institutional investors into the industry is the lack of reliable solutions for storing digital assets and other products focused on large market players.
“Institutional money started trickling into cryptocurrency in mid 2017, but it’s been slower than many expected. That doesn’t mean it’s not coming. There are a lot of pieces that need to come together, one big piece being third party custody. Custody isn’t binary. It’s not like Coinbase custody will launch and suddenly every pension will throw $100 million into BTC. It takes time for custody solutions to gain trustworthiness. But, I think we’ll have solid third party custody by September of this year.”
Institutional investors are not the only way to Bitcoin pump. According to experts, the Bitcoin rate can overcome last year’s peak with the emergence of Bitcoin-focused Exchange Traded Fund (ETF).
IronWood researchers consider the approval of the bitcoin ETF in the US Securities Commission (SEC) as a good prerequisite for growth to at least $ 26.000.
IronWood CEO Michael Strutton is convinced that if the SEC approves Bitcoin ETF, then the large-scale investment companies and funds, including Fidelity and Ameriprise Financial, will certainly enter the digital assets market.
“If ETFs add 24 million US investors and the upward momentum adds 14 million from the rest of the world, then that adds $84 billion and $336 billion, respectively, to the market cap. Over the past six months, Bitcoin’s market cap has swung from $326 to $110 billion. Adding $420 billion to the market cap could put Bitcoin price range from $26,000 to $44,000.”
The Winklevoss twins, owners of a large US exchange Gemini, are working on their own ETF called Coin. The company SolidX previously tried to run the ETF, but was denied the SEC. Now SolidX works with VanEck to increase their chances for success. Bloomberg analyst Eric Balchunas believes that this cooperation significantly increases the likelihood that the US government will make a positive decision.