The big question once a Bitcoin spot ETF is launched in the US, is just how much inflows into ETFs this may prompt? and what impact on price those flows may have? Some good analysis has already been done on the former by Galaxy who surmised that there are US$14.4 trillion addressable assets in the United States. One could assume that perhaps 10% invest in a spot bitcoin ETF with an average allocation of 1%, which would equate to US$14.4 billion of inflows in the first year. If this were correct then it would be the largest inflows on record, with the largest so far being in 2021, which saw US$7.24 billion of inflows, representing 11.5% of assets under management (AuM). On a proportional basis though, 2021 did not see the largest inflows, that was in 2020, where we saw US$5.5 billion of inflows representing a higher 21.6% of AuM. It was also a year where the price rose by 303%, compared to 60% in 2021.
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