Glass node Analysis Reveals Spot Bitcoin ETF Approval Could Unleash $70B Capital Influx An
influx of demand would confront relatively limited liquid bitcoin (BTC) supply, potentially amplifying volatility,
Glassnode researchers detail in a report
published on November 20. The
analysts estimate up to $70.5 billion could flow into the market from stock, bond, and gold investors allocating just a fraction of assets. Even more conservative projections see tens of billions entering in the first years.
Unlike existing bitcoin investment vehicles,
a spot ETF would provide institutions with direct and regulated bitcoin exposure. This could attract major inflows even if some capital shifts from current proxy funds. Historical data shows new access unleashing asset demand.
Glassnode summarizes that the approval of a spot bitcoin ETF signifies a pivotal moment for institutional involvement. However, the ensuing changes in supply and demand could significantly heighten market volatility.
