How Much Money Will Flow Into Bitcoin ETFs? Here’s One Projection

Alex Thorn, head of research at Galaxy, sees inflows to spot bitcoin ETFs reaching more than $14 billion in the first year after a potential SEC approval and the price of bitcoin spiking to $47,000. He also sees approval of these products possibly occurring this year.

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In a recent report, Alex Thorn, head of research at Galaxy, predicted that inflows to spot bitcoin ETFs would rise above $14 billion in the first year following the potential approval by the Securities and Exchange Commission of multiple applications the agency is considering. Thorn called the availability of this product significant because it will give financial advisors and wealth managers accessibility to digital assets in a way that will be acceptable to clients seeking exposure to crypto. He also believes approval of a spot BTC ETF could occur this year before the holidays and draws comparisons between bitcoin and gold as investment products.

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Show highlights |

Why Alex believes this is a significant moment for Bitcoin
How, in Bitcoin, retail had access to this asset before institutions
Why Alex expected the spot Bitcoin ETF approved this year
What the capital inflows Galaxy expects to be in the first years and how they arrive at those numbers
Whether the addressable market will increase significantly for Bitcoin
What will be the average percentage of assets adding BTC exposure?
Why Alex compares Bitcoin to gold, and what he learned after comparing both types of assets
How much the price of Bitcoin will increase after the first year of the ETF approval, according to Galaxy's report
How the several spot Bitcoin ETFs will be differentiated

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Guest |

Alex Thorn, head of firmwide research at Galaxy

Links |

Previous coverage of Unchained on spot Bitcoin ETFs:

Why a Spot Bitcoin ETF Will Probably Launch No Later Than January 10

Why It Looks Like BlackRock Could Win America’s First Spot Bitcoin ETF

The Chopping Block: Are We Back? The 'Low IQ' Response to the Potential Spot Bitcoin ETF

Unchained:

Bitcoin Soars Past $35,000 Amid Spot ETF Optimism

Bitcoin ETFs Explained: What Are They & How Do They Work?

CoinDesk:

BlackRock Bitcoin ETF in August Got on DTCC Site That Just Belatedly Moved Markets

12 spot bitcoin ETFs in consideration by the SEC

Galaxy:

Sizing the Market for a Bitcoin ETF

Alex’s thread drawing out highlights from the report

Alex’s thread on the potential for a “gamma squeeze”

CoinShares Digital Asset Funds Flow Weekly

Unchained Podcast is Produced by Laura Shin Media, LLC. Distributed by CoinDesk. Senior Producer is Michele Musso and Executive Producer is Jared Schwartz.

HOST

Laura Shin

Laura Shin is a crypto journalist, host of the Unchained podcast, and author of “The Cryptopians: Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze” (Public Affairs, 2022). Formerly a senior editor at Forbes, she was the first mainstream journalist to cover crypto full-time, and her podcasts and videos have had more than 15 million downloads and views. Shin has spoken about cryptocurrency at places such as TEDx San Francisco, the International Monetary Fund, Singularity University and the Oslo Freedom Forum.

She graduated Phi Beta Kappa with Honors from Stanford University and has a master of arts from Columbia University’s School of Journalism. She lives in New York City.