Bitcoin ETF - New record!

ETFs continue to attract more capital. JP Morgan sees bitcoin’s market cap quadrupling over the next two years.

JP Morgan foresees $280,000 for one bitcoin

According to an analyst at JP Morgan, Bitcoin ETFs could potentially attract up to $220 billion over the next three years.

This means that the price of BTC could quadruple to reach $280,000, the analyst stated in a research paper published this Wednesday. The total bitcoins would then have a market capitalization of $5.5 trillion.

This figure would represent a little less than half of gold’s market capitalization. Currently, bitcoin requires an approximately 1000% increase to match it. Which may not take too long if we believe Michael Saylor.

Blockstream CEO Adam Back declared this Tuesday that we should already be at $100,000. Mainly because the real ATH (All-Time High) of bitcoin is now more around $79,000 when taking inflation into account.

Indeed, there is a good chance that we will reach these infamous $100,000 before the end of the year. Net inflows have in fact just exceeded one billion dollars for the first time.

Here is a chart illustrating the positive (green) and negative (red) net inflows into American ETFs:

Spot BTC ETFs had their first $1+ billion inflow day. pic.twitter.com/A3vzzKzF6p

— Jim Bianco (@biancoresearch) March 13, 2024

Soon a market cap of $5.5 trillion?

ETFs now hold more than 202,000 bitcoins. Bearing in mind that this number accounts for the massive outflows from the ETF GBTC. In other words, ETFs have in reality already absorbed 432,000 bitcoins, which is about 31 billion dollars.

At a rate of one billion dollars per business day, ETFs could potentially attract nearly 260 billion dollars per year. Although half of that seems more realistic.

Then there is the demand from the millions of investors who do not go through ETFs. For instance, the trading volume of bitcoins on Binance reaches about 20 billion dollars. That’s twice as much as what’s seen in American ETFs:

ETF trading volumes $. #Bitcoin > #gold pic.twitter.com/4KUFD3OVSA

— Charlie Morris (@AtlasPulse) March 13, 2024

The JP Morgan analyst estimates that “the capital inflows observed so far are likely just the tip of the iceberg”. To him, the approval of ETFs is just the beginning of a longer “capital allocation process”.

“If net inflows into ETFs reach $220 billion, by applying our estimated multiplier of around 25 times, it could alone lead to an increase in bitcoin’s market capitalization to $5.5 trillion, or $280,000 for one bitcoin”.

More than just a medium of exchange, bitcoin especially attracts as a store of value. Do not miss our article: M. Saylor: “Bitcoin does not need to replace fiat currency”.