Matrixport Sees Bitcoin at $42,000 if ETF Gets Green Light

Matrixport’s recent research suggests that Bitcoin’s price could soar to $42,000 if BlackRock’s ETF gets approved.

Man watching huge Bitcoin float with black rocks in his tech lair.
Created by Kornelija Poderskytė from DailyCoin
  • Matrixport predicts a Bitcoin surge if BlackRock’s ETF is approved.
  • The study outlines both conservative and optimistic scenarios for Bitcoin’s price.
  • The U.S. RIA community’s role in potential market inflows is highlighted.

As the crypto market awaits the approval of spot Bitcoin ETFs, markets are preparing for a watershed moment. The potential for mainstream adoption and significant institutional inflows make investors pay close attention to it.

In this context, Matrixport, a key player in the crypto industry, has released compelling research that could have far-reaching implications. The study delves into the potential impact of BlackRock’s Bitcoin ETF approval on the cryptocurrency’s price, offering conservative and optimistic projections.

Matrixport’s Predictions and the Logic Behind Them

Matrixport’s research, released on December 9, 2022, offers two key predictions for Bitcoin’s price if BlackRock’s Bitcoin ETF gets approved. The conservative estimate suggests that Bitcoin could rise to $42,000, while the optimistic scenario puts the potential price at $56,000.

The logic behind these predictions centers on the role of the U.S. registered investor advisor (RIA) community, which manages around $5 trillion in assets. A mere 1% allocation from this group could result in a $50 billion influx into Bitcoin. 

The conservative $42,000 estimate uses Tether’s market cap as a proxy, suggesting that a $24 billion increase in Tether could push Bitcoin to that price. The optimistic $56,000 figure assumes a larger $50 billion influx, potentially from a more significant RIA allocation. 

Overall, Matrixport’s research indicates that BlackRock’s Bitcoin ETF approval could be a significant catalyst for Bitcoin’s price, especially if it attracts substantial investment from the RIA community.

Latest News and Background on BlackRock’s Bitcoin ETF Approval

BlackRock’s Bitcoin spot ETF has been a topic of intense discussion and speculation within the financial and crypto communities. BlackRock, one of the world’s largest asset managers with over $9 trillion in assets under management, adds significant weight to the conversation. 

Its entry into the Bitcoin ETF space would be a monumental step towards the mainstream acceptance of cryptocurrencies. A potential approval opens the door for institutional investors, who may be restricted from holding cryptocurrencies directly, to invest in Bitcoin.

Recent developments have shown how much the ETF approval would impact the market.  On October 16, 2023, a rumor circulated on social media that the Securities and Exchange Commission (SEC) had approved BlackRock’s spot Bitcoin ETF application, causing Bitcoin’s price to surge to nearly $30,000. However, BlackRock promptly refuted these claims, stating that the SEC still reviews their application.

On the Flipside

  • While the Matrixport study and the potential BlackRock ETF approval paint an optimistic picture, it’s essential to consider the inherent volatility of the cryptocurrency market. 
  • The optimistic scenarios Matrixport presents are based on several assumptions, including a stable macroeconomic environment and a favorable regulatory climate. These conditions are not guaranteed and could change, affecting the projected outcomes.

Why This Matters

The approval of a Bitcoin ETF by a financial giant like BlackRock could serve as a significant market indicator, influencing investment strategies and portfolio allocations. With Matrixport’s research offering conservative and optimistic scenarios, traders and investors have valuable data to consider in their decision-making process.

Read more about the recent Bitcoin EFT drama:
Bitcoin ETF Excitement Questioned Following Fake News Report

Read more about Chainalysis’s take on crypto in terrorism:
Chainalysis Debunks Myths on Crypto in Terrorism Financing

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.