On-chain data platform CryptoQuant shared a report on Bitcoin ETFs and the market impact of a possible approval. The report stated that the legal victories of Ripple and Grayscale indicate that the SEC will approve Bitcoin spot ETF applications.

From adding Bitcoin to the balance sheet to providing Bitcoin to customers…

The report stated that the 2021 bull season was also initiated by institutional companies, but now these companies have taken it upon themselves to provide Bitcoin access to their customers as well as adding Bitcoin to their balance sheets. While it is written that it is certain that providing Bitcoin access to customers will be done with spot ETFs, it was informed that the deadline for many ETF applications is March 2024.

“If they put 1 percent, 155 billion dollars will come in”

In the report, which stated that the asset value under the management of companies applying for Bitcoin spot ETF is $ 15.6 trillion, it was commented that if these companies invested even just 1 percent of this figure in Bitcoin, the BTC market cap would increase by $ 155 billion. While it was stated that this figure is approximately 1 third of the current market cap, it was written that the entry of this money will also accelerate the inflow of new money.

“Every dollar raised the market cap by 3-5 dollars”

Stating that the total market value increased by 3 to 5 dollars for every 1 dollar of fresh money entering the market during the bull periods in March and November in both 2017 and 2021, the report said:

“Indeed, if we calculate this relationship between the annual growth of Bitcoin’s market cap and the annual growth of Bitcoin’s realized cap (by calculating the ratio between these metrics), we can see that most of the time, it has stood between 3 and 6 during bull markets. Given this historical relationship, we can expect the market capitalization of Bitcoin to increase between $450 and $900 billion as a result of $150 billion entering the Bitcoin market.”