In the midst of Bitcoin’s recent upswing, the notion of potentially adding $1 trillion to its market capitalization via Bitcoin spot ETFs has drawn significant attention from the market.finally surged past the critical $27,000 price threshold, an event that sparked excitement among traders and long-term holders alike.
This analysis anticipated that approximately $155 billion could flow into the BTC market once these ETFs are granted approval. A mere allocation of 1% of their AUM into Bitcoin ETFs could inject nearly $155 billion into the market, representing nearly one-third of the king coin’s current market capitalization.The mechanics of how new capital entering the market impacts Bitcoin’s market capitalization were evaluated. In particular, analysts looked at changes in realized capitalization.
A historical analysis depicted the evolution of Bitcoin’s market cap and realized cap. This data provided insights into the metrics during the peak periods of 2013, 2017, and 2021.