Glassnode: Bitcoin ETF To Unlock $70B in New Demand
According to a recent report by on-chain data firm Glassnode, there is significant unmet demand from investors for a spot Bitcoin exchange-traded fund (ETF).
Glassnode estimates that up to $70 billion in new capital could flow into the Bitcoin market after the approval of a spot Bitcoin ETF. This projection is based on the assumption that 10% of money currently invested in major stock and bond ETFs would shift to a Bitcoin ETF, along with 5% of capital allocated to gold ETFs.
Source: Glassnode
The report points to diminishing Bitcoin supply available for trading to meet this potential demand surge. Glassnode data shows the percentage of the Bitcoin supply held by short-term investors recently hit multi-year lows. Meanwhile, the share of long-term Bitcoin holders reached all-time highs above 76% in October.
"The scarcity of readily tradable Bitcoin may amplify market volatility and price movements in response to the influx of ETF-driven capital," the Glassnode report concludes.
U.S. regulators have yet to approve a spot Bitcoin ETF. Approval could significantly expand access and demand for Bitcoin from institutional investors.
Glassnode suggests a spot Bitcoin ETF could have impacts comparable to the first U.S. gold ETF launched in 2003. In the decade that followed, gold prices rose over 400% amid greater investment demand.