Bitcoin Price Could Soar to $56,000 If BlackRock ETF Is Approved, Matrixport Says

Crypto services provider Matrixport has predicted that bitcoin (BTC) could reach a new all-time high of $56,000 if the U.S. Securities and Exchange Commission (SEC) approves a spot bitcoin exchange-traded fund (ETF) from BlackRock, the world’s largest asset manager.

In a report published on Thursday, Matrixport said that a BlackRock spot bitcoin ETF would be a “game-changer” for the crypto market, as it would attract more institutional and retail investors to the space. The report estimated that a BlackRock spot bitcoin ETF could see inflows of $6.4 billion in the first year, based on the historical performance of other ETFs.

According to Matrixport, a BlackRock spot bitcoin ETF would also boost the demand for bitcoin and reduce the supply, as the ETF provider would have to buy and hold bitcoin to back its shares. This would create a positive feedback loop that would drive up the price of bitcoin.

Matrixport said that based on its model, bitcoin could rise to between $42,000 and $56,000 if a BlackRock spot bitcoin ETF is approved. The report noted that this range is conservative and does not account for other factors that could affect the price, such as market sentiment, regulatory developments, and macroeconomic events.

The report also said that a BlackRock spot bitcoin ETF would have a spillover effect on other crypto assets, such as ethereum (ETH), ripple (XRP), and altcoins. Matrixport said that these assets would benefit from the increased adoption and awareness of crypto, as well as the potential for more ETFs to be launched in the future.

Matrixport concluded that a BlackRock spot bitcoin ETF would be a “win-win” situation for both the crypto industry and the traditional financial system, as it would bridge the gap between them and create more opportunities for innovation and growth.