The company predicts that after a spot Bitcoin ETF is approved in the US, over $30 billion will enter the market over the next months.
The institutional investors’ widespread acceptance of Bitcoin (BTC) has warned the gold market that there may be a decoupling in the next few years. A report by Matrixport claims that Bitcoin is about to compete with gold as a store of wealth simply because it has outperformed the latter over the past few years. Additionally, despite the bankruptcy of FTX and Alameda Research, which destroyed more than $30 billion from the fledgling business, the demand for Bitcoin has grown dramatically in the last year.
The market capitalisation of more than ten fund managers, which is significant, is To provide spot Bitcoin Exchange-Traded Funds (ETFs), more than $17 trillion have filed applications with the Securities and Exchange Commission (SEC) of the United States. It’s interesting to note that the SEC was unsuccessful in its lawsuit against Grayscale Investments because there wasn’t enough proof as to why the latter couldn’t convert its GBTC product to a spot Bitcoin ETF. Because of this, analysts think there are now significantly more chances for a Bitcoin ETF to be approved in the next six months.
Why Bitcoin Is Better Than Gold, according to Matrixport
Bitcoin has a better chance than gold of replacing the dollar as the world’s primary store of value in the upcoming years, claims Matrixport, an all-in-one cryptocurrency financial services platform. In addition, Bitcoin is a superior international asset than gold, which needs a lot of regulation to provide similar services. Additionally, Bitcoin is more adaptable and gives all consumers access to affordable, high-quality services.
According to Markus Thielen, head of research at Matrixport, “Even today, storing assets in the form of gold has not only lost favor in the digital age but also comes with significant restrictions when crossing borders.” He continued, “Bitcoin offers a solution to this dilemma, enabling the swift and relatively inconspicuous movement of value across broder”.
Global policymakers are closely monitoring the spread of Bitcoin among regular users because of allegations that several nations are using the digital currency to get around international restrictions. The ongoing conflict between Russia and Ukraine as well as more recent hostilities between Israel and Gaza have had a major impact on the world’s supply of oil and gas goods.
Matrixport anticipates that Bitcoin’s market value will rise above that of gold, which has an unlimited supply, despite the fact that it has a higher volatility due to the high level of speculation from international investors.
The paper continued, “Thus, considering the current state of technological improvements, bitcoin’s principal roles are expected to be as a speculative financial asset and a store of value comparable to gold.
Market Prospects and Price Movement
The market for Bitcoin (BTC) Value has been fluctuating between $500 billion and $600 billion over the past few months, but analysts at Matrixport think that after a spot ETF is approved, more than $30 billion might enter the Bitcoin market. The price of Bitcoin is currently waiting for the halving event early in 2019 to start the bigger crypto bull run.