In recent months, the anticipation of a spot Bitcoin ETF approval in the U.S. has triggered a significant surge in Bitcoin prices.
James Butterfill, the Head of Research at CoinShares, has added fuel to this speculation by sharing his analysis through his social media platform on X.
Butterfill’s Analysis:
James Butterfil his insights into the potential impact of a Bitcoin Spot ETF in the U.S. His post highlighted the following:
- $2.5 billion inflows could push prices up to $54,000.
- $6.2 billion inflows could potentially drive prices up to an impressive $81,000.
In-Depth Analysis:
Butterfill’s comprehensive examination, detailed in a recent blog post, delves into the intricate relationship between Bitcoin prices and Exchange-Traded Products (ETP) fund flows.
He emphasizes the coexistence of price growth and increased inflows, drawing on historical data to suggest that ETP investors should adopt a momentum-driven approach.
The study also identifies periods of market weakness that impact sentiment-based ETP trading. Butterfill introduces a forecast model linking weekly flows, expressed as a percentage of Assets under Management (AuM), to 45-day price fluctuations.
According to this quantitative methodology, the model predicts that an expected $14.4 billion in inflows could propel the price of Bitcoin to a staggering $141,000.
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