Bitcoin Equilibrium Price Likely to Top $168,000 Following ETF Approval, FSInsight Says

Read the full article by Will Canny here

Demand for ProShares’ bitcoin futures ETF is likely to exceed $50 billion in the first year.

Key Points:

• The 10 largest ETF launches witnessed inflows of $14 billion in their first year on average. The most successful was the Nasdaq 100 ETF(NASDAQ:QQQ) in 1999, with inflows of $36 billion . FSInsight expects demand for Proshares’ Bitcoin Strategy ETF to surpass that of QQQ and forecasts inflows of more than $50 billion.

• FSInsight estimates that bitcoin daily demand will increase by $50 million due to ETF inflows and if the block reward is $10 million per day the “equilibrium price to clear this, based on analysis by our data science team = $168,000.”

• This equilibrium price, which is the value at which demand for bitcoin meets supply, is above FSInsight’s bitcoin year-end target of $100,000. Bitcoin was trading at about $62,260 as of publication time.

  RELATED:
  

Grayscale and @NYSE formally kicked off the process this morning to convert $GBTC into the first spot-based bitcoin ETF

Upon conversion, the Grayscale Bitcoin Trust will trade under the ticker symbol $BTChttps://t.co/hev2bWb4r0

— Barry Silbert (@BarrySilbert) October 19, 2021