People are expecting the U.S. Securities and Exchange Commission (SEC) to soon approve a Bitcoin exchange-traded fund (ETF). But it looks like there’s still a lot of paperwork with the SEC. Some people think an announcement could be made by the end of this week, while others think it could be announced early next week before the January 10th deadline.
In a new video, British Hodl talks about the Bitcoin ETF and why it’s a game-changer. He makes an important point: the way people typically invest in Bitcoin is different from other assets. Normally, ordinary people like us invest our money in investments occasionally and not on a regular basis like large institutions. However, things may change with Bitcoin ETFs. Hodl, a Briton, says ETFs allow larger funds, such as retirement plans, to invest a bit in Bitcoin on a regular basis.
This constant flow of funds enabled by ETFs could quickly consume all the Bitcoin available on the market. While many people are focused on how much money will flow into Bitcoin over the years, British Hodl believes we should pay attention to the money flowing into ETFs on a daily basis.
He explains that according to research, it would take about $30 million in daily purchases to keep the price of Bitcoin stable at $30,000. So applying this to the first year of U.S. Bitcoin ETF trading, British Hodl believes we could see a total of $25 billion. That’s an additional $99 million every day.
He said this demand could cause the price of Bitcoin to surge to $515,000 on the first day of trading. But he admits this is a simple calculation and doesn’t take into account what short sellers or ordinary people might do.
Despite Bloomberg analyst James Seyffart’s more conservative estimate of $10 billion, British Hodl still sees the price rising to $77,000 on the first day. He reminds us that Bitcoin is global and its impact will be felt globally.