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Should an ETF be approved, more than $300 million of institutional capital will flow into the bitcoin ecosystem in the first week, according to Bogart. This is expected to boost bitcoin’s price.
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If $300 million of new money really flows in during the first week, that will be the understatement of the century.
$300 million => ~ 300,000 bitcoins
At 1800 newly generated coins per day that is about 166 full days of new supply. Sure, some other people would sell, but that is a huge number for one week.
It could also result in a virtuous cycle. Money flows in, people make paper gains, people are happy.
This could result in even more money flowing into the ETF.
Agreed. But one ETF alone (if the figures hold) is a huge deal.
One ETF is a big deal and a lot of money could flow in. But think of the downside if it does get approved and some time later there is negative news about Bitcoin. People could try and sell/withdraw money and this would put huge pressure on the bitcoin market. That could be the mother of all dumps.