Key Points
- Spot Bitcoin ETFs could see inflows of up to $220 billion by 2027, potentially causing a surge in Bitcoin’s price.
- Coinbase Global Inc could benefit significantly if these inflow estimates are accurate.
According to a research report by JMP Securities, spot Bitcoin ETFs may see inflows of up to $220 billion within the next three years. This could potentially lead to a fourfold increase in Bitcoin’s price, reaching $288,000.
Bitcoin ETF Inflows
In just two months following their launch, the total spot Bitcoin ETF inflows surpassed $10 billion. JMP Securities believes this is just the beginning, suggesting potential for significant growth. The firm estimates that $220 billion of incremental flows will come into the ETFs over the next three years, which could drive a $5.5 trillion Bitcoin market cap increase, or $280,000 per Bitcoin.
On March 12, the spot Bitcoin ETFs experienced a record day with net inflows totaling 14,706 Bitcoin, valued at over $1 billion.
Coinbase’s Potential Advantage
If these inflow estimates are accurate, cryptocurrency exchange Coinbase Global Inc stands to benefit significantly. The brokerage firm has increased its price target for the COIN from $220 to $300, while retaining its market outperform rating. At the time of reporting, Coinbase shares were up 2.6% at $262.92.
In the past 60 days, Blackrock’s ETF #IBIT has absorbed approximately 200,000 Bitcoin, representing around 10% of the total Bitcoin available across all exchanges. However, it remains to be seen how many additional 60-day periods Blackrock can continue purchasing 10% of the available supply before triggering a parabolic increase in the price of Bitcoin.
With the Bitcoin halving scheduled for next month, analysts are predicting a significant bull run for Bitcoin. After examining historical patterns of Bitcoin halving events, crypto analyst Ali Martinez found that after each halving, it took progressively longer for Bitcoin to reach its peak. After the 2012 halving, it took 367 days, after the 2016 halving, it took 526 days, and after the 2020 halving, it took 547 days.
