Friday, May 16, 2025
  • About us
  • Economic Calendar
  • Price Predictions
  • Coins Alerts
  • Crypto Portfolio Tracker
  • Exclusively from Our Partners
Cryptheory
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
        • Binance Futures Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions
No Result
View All Result
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
        • Binance Futures Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions
No Result
View All Result
Cryptheory
No Result
View All Result

How will the possible approval of a BTC ETF fundamentally change the price?

by Margharet Tess
September 2, 2021
in Cryptheory News
Reading Time: 5 mins read

 

Bitcoin ETF approval
BTC ETF approval. Source: Shutterstock.com/kkssr

Some financial experts believe that the price of cryptocurrencies is driven solely by investor speculation. Public pension funds, pension plans and most non-cash, equity and multi-market investment funds can only invest in certain asset classes. These limits result from the fund class regulation, the fund’s own articles of association and the risk assessment of the manager.

Not every fund can invest in the Grayscale BTC Trust

Mutual fund manager it has no absolute control over the investment decision. The fund manager is a third party that acts as an intermediary between the fund manager and the investors. This is especially true when verifying and distributing investment-related assets. The fund manager could therefore decide that a particular instrument poses a significant risk, and either limit the exposure or refuse access to it.

Breakdown of Amundi funds by asset class.  Source: Amundi

 

Breakdown of Amundi funds by asset class. Source: Amundi

Global Asset Managers they will generally have a 30 to 60 percent fixed income exposure. So it is very unlikely that they would be exposed to cryptocurrencies. Amundi, a leading European investment company with assets under management of more than $ 2.1 trillion, is a good example.

According to BCG Group the global asset industry has exceeded $ 100 trillion, with North America holding nearly 50 percent of that figure. Unfortunately, these astronomical numbers cause analysts to incorrectly assign these numbers to an exchange traded fund (ETF) instrument.

#Grayscale has partnered BNY Mellon, the world’s largest custodian bank with $ 41 Trillion in assets in custody. In Feb 2021, #BNYMellon announced they were entering the #Crypto space. Big move by Grayscale in the battle for a #BTC ETF.@Grayscale @BNYMellon #etf #bitcoinetf pic.twitter.com/RfSO7UOKGS

– Thinking Crypto – YouTube Channel & Podcast (@ ThinkingCrypto1) July 13, 2021

StormGainAccording to the Reuters more than half of all investment grade corporate bonds in the euro area are now trading at negative yields. This includes government debt of $ 7.7 trillion, which represents 70.8% of the total. The Financial Times reported that the value of global debt with a negative yield exceeded $ 16.5 trillion.

Investors will gradually abandon fixed income strategies and move to ETFs

There is reason to believe that investors with negative returns will eventually move to riskier assets. However, a complete transition to cryptocurrencies is unlikely to occur. However, the most likely beneficiaries are non-leveraged multi-purpose assets and alternative investments. These tools usually bring lower risk such as high-yield stocks and structured assets and bonds.

As a result, possible BTC ETF approval the US Securities and Exchange Commission will open the door to a large number of funds. Although the ETF is reserved for part of the shares and classes of multiple assets, the new instrument does not even need to raise $ 500 billion to propel BTC’s market capitalization above $ 2 trillion. Less than 2.5 million coins are deposited on the exchanges, which represents $ 125 billion ready for trading.

Commodity funds are the best candidates

According to iShares, the value of global commodity products traded on the stock exchange reaches up to $ 263 billion. Given that not every mutual fund is listed, it is reasonable to assume that the actual number exceeds $ 500 billion.

This means that only a 1 percent allocation from this particular asset class equals $ 5 billion. Such an investment would certainly be enough to make the price of BTC got over a maximum of $ 65,000.

If the BTC ETF is approved, traders trigger a potential influx immediately after the announcement of approval. Regardless of whether the products receive only $ 5 billion in the first months.

As governments and central banks continue to support liquidity, buy bonds and issue stimulus packages, riskier assets will grow, thereby increasing the demand for ETFs.

  • Author
  • Recent Posts
Margharet Tess
Margharet Tess
Editor, Developer at Cryptheory Labs
I have been active in the cryptocurrency world for over 6 years, during which I have written countless articles about this sector. What fascinates me most about cryptocurrencies is their technological aspect and the problems they aim to solve. In the past three years, I have ventured into app development and am currently working on a larger project called P2E Buzzer. Stay tuned for the surprise. 🙂 My previous experiences: Business2Community.com, TradingPlatforms.com
Margharet Tess
Latest posts by Margharet Tess (see all)
  • Trading Signals for May 13, 2025: Altcoins in the Spotlight - May 13, 2025
  • What Exchanges Won’t Tell You – Part 2: Staking Scams & Launchpad Lies - May 12, 2025
  • What Exchanges Won’t Tell You: How They’ll Milk You Even in a Bull Market – Part 1 - May 12, 2025
Tags: btc etfinstitutional investments
Previous Post

Cardano (ADA) on the new ATH, first got over $ 3

Next Post

BTC analysis – the price is heading for a new maximum, where is the target?

Related Posts

Spot Market Flexes and Derivatives Cry in the Corner: How Does It Look On-Chain?
Cryptheory News

Spot Market Flexes and Derivatives Cry in the Corner: How Does It Look On-Chain?

May 15, 2025
Ethereum is Waking Up: What On-Chain Data Really Says
Analysis

Ethereum is Waking Up: What On-Chain Data Really Says

May 14, 2025
EU Wants to Track Your Crypto Like a Hawk – and They’re Not Even Sorry
Cryptheory News

EU Wants to Track Your Crypto Like a Hawk – and They’re Not Even Sorry

May 9, 2025
Recession Incoming? Experts Can’t Agree If We’re Screwed or Just Slightly F***ed
Cryptheory News

Recession Incoming? Experts Can’t Agree If We’re Screwed or Just Slightly F***ed

May 9, 2025
Bitcoin Gets Freaky: $2.2B Futures Surge and a Whole Lotta Bullish Mojo
Cryptheory News

Bitcoin Gets Freaky: $2.2B Futures Surge and a Whole Lotta Bullish Mojo

May 1, 2025
Bitcoin Supply in Profit Nears That Classic “Euphoria Trigger”
Cryptheory News

Bitcoin Supply in Profit Nears That Classic “Euphoria Trigger”

April 30, 2025
Bitcoin Addresses Activity 2025: Is the Network Still Alive or Just Hungover?
Cryptheory News

Bitcoin Addresses Activity 2025: Is the Network Still Alive or Just Hungover?

April 29, 2025
On-Chain Insights: Bitcoin Fires Up After Tariff Buzz – But Is This Real or Just Another Puff of Smoke?
Cryptheory News

On-Chain Insights: Bitcoin Fires Up After Tariff Buzz – But Is This Real or Just Another Puff of Smoke?

April 28, 2025
2025 On-Chain Trends: Bitcoin Rules the Battlefield — Altcoins? Total Carnage
Cryptheory News

2025 On-Chain Trends: Bitcoin Rules the Battlefield — Altcoins? Total Carnage

April 25, 2025
Please login to join discussion
Track all markets on TradingView
Score: 0
Game Over

Popular

What Exchanges Won’t Tell You – Part 2: Staking Scams & Launchpad Lies

What Exchanges Won’t Tell You – Part 2: Staking Scams & Launchpad Lies

May 12, 2025
What If Russia Gets Its Way in Ukraine — Will It Impact Bitcoin’s Price?

What If Russia Gets Its Way in Ukraine — Will It Impact Bitcoin’s Price?

April 25, 2025
Litecoin Price Analysis: Will LTC Pump or Just Play With Our Emotions Again?

Litecoin Price Analysis: Will LTC Pump or Just Play With Our Emotions Again?

April 22, 2025
Bitcoin Addresses Activity 2025: Is the Network Still Alive or Just Hungover?

Bitcoin Addresses Activity 2025: Is the Network Still Alive or Just Hungover?

April 29, 2025
Why You Should NEVER Hire a Hitman on the Darknet with Crypto (Unless You Want to Ruin Your Life)

Why You Should NEVER Hire a Hitman on the Darknet with Crypto (Unless You Want to Ruin Your Life)

April 30, 2025
Bitcoin Supply in Profit Nears That Classic “Euphoria Trigger”

Bitcoin Supply in Profit Nears That Classic “Euphoria Trigger”

April 30, 2025
What Exchanges Won’t Tell You: How They’ll Milk You Even in a Bull Market - Part 1

What Exchanges Won’t Tell You: How They’ll Milk You Even in a Bull Market – Part 1

May 12, 2025
Let’s Be Honest: Most Crypto Projects Are Just Bullshit Wrapped in a Sexy Website

Let’s Be Honest: Most Crypto Projects Are Just Bullshit Wrapped in a Sexy Website

May 15, 2025
BCH, bitcoin cash

Bitcoin Cash on the Edge: Will BCH Pump or Just Take a Dump?

April 24, 2025
How to Start Trading Crypto Without Screwing Yourself Over: A Beginner’s Guide

How to Start Trading Crypto Without Screwing Yourself Over: A Beginner’s Guide

May 1, 2025

⭐ What Type of Crypto Investor Are You?

1. How do you buy crypto?

2. What do you do when a coin drops 50%?

3. How do you follow the market?

4. How long have you been in crypto?

5. Your biggest mistake?

6. What do you think about CBDCs?

7. Funniest crypto meme?

8. Do you believe in Bitcoin as the future?

9. How many coins do you hold?

10. How do you feel in a bear market?

Crypto News

Bitcoin

Ethereum

Altcoins

Cryptocurrency

Platforms for Copy Trading

Platforms for Grid Trading

Glossary of trading and crypto terms

Crypto Portfolio Tracker

 

Guest Post for Free

On our website, you can share your opinions and insights. This feature is reserved for non-promotional articles. We are already working on a system for donations and rewarding every author.

This website is here for those of you who want to be at the forefront of innovation and new technologies like Bitcoin. But first, we need to tackle the challenges and survive in the unforgiving world of crypto assets. THIS IS CRYPTHEORY!

Follow Us

  • Terms Of Use
  • Privacy Policy
  • About us
  • Contact us

© 2024 Cryptheory - F**k the forex, we want gains!

Shiba Inu loading
No Result
View All Result
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions

© 2024 Cryptheory - F**k the forex, we want gains!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.