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Analyst: Blackrock’s Bitcoin Spot ETF May Unleash $30 Trillion From US Advisors

The possibility of a Bitcoin spot Exchange Traded Fund (ETF) launching in the US, which has gained much attention over the past months, has again made headlines due to Bloomberg ETF analyst Eric Balchunas’s recent suggestions.

According to the analyst, should the US Securities and Exchange Commission (SEC) approve BlackRock’s Bitcoin spot ETF, a vast pool of $30 trillion capital overseen by US financial advisors could be directed toward Bitcoin investments.

Notably, Balchunas clarified that while the approval of a BTC spot ETF could serve as an accessible pathway for the $30 trillion managed by financial advisors to flow into BTC investments potentially, it is not particularly sure if the entirety of the $30 trillion would move into Bitcoin.

The analyst noted that only a fraction of that amount might consider investing. Balchunas noted: “But even if 0.5% of that allocates, it’s $150b.”

Aftermath Of A BlackRock’s Bitcoin Spot ETF

It is worth noting that when BlackRock, boasting over $9 trillion in assets under management, lodged its Bitcoin spot ETF application, it didn’t merely mark its entry. It also dramatically tilted the probability scales for an ETF approval.

Before BlackRock stepped into the frame, the Bloomberg expert claimed that the odds of a BTC spot ETF seeing the light of day in the US hovered around a mere 1%. However, after BlackRock’s involvement, Balchunas disclosed in a podcast that the probability surged to 50%.

Their application had consequences. Balchunas observed a subsequent surge in similar applications from renowned entities, namely ARK Investment, Valkyrie, and Fidelity. This underscored BlackRock’s influence and the escalating competition in the space.

Balchunas noted:

Their application triggered a wave of similar filings by other prominent firms such as ARK Investment, Valkyrie, and Fidelity, setting the stage for a highly competitive environment.

Spot ETF Vs. Futures ETF: The Real Potential

The US isn’t entirely unacquainted with BTC ETFs. Bitcoin futures ETFs have already made their mark, albeit in a limited manner.

As it stands, these futures-based ETFs amass roughly $1 billion in total assets under management. A figure that, though impressive, may appear minor in the face of a spot ETF’s potential.

Balchunas went as far as to term the BTC spot ETF the “holy grail.” A product that, if approved, could overshadow existing futures ETFs and charge up the crypto domain in ways so far unseen.

Meanwhile, amid the race to approve a Bitcoin spot ETF, BTC has been in a continuous downtrend over the past week. The asset has dipped below the $26,000 mark, down by 5.7%. Bitcoin currently trades for $25,501, at the time of writing, down by nearly 1%.

Bitcoin (BTC) price chart on TradingView

Featured image from iStock, Chart from TradingView

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Make or Break Season? Crypto Analyst Predicts A Fall To $1,200 If Ethereum Stays Beneath This Level

Like most altcoins, Ethereum (ETH) has seen its price succumb to the negative market sentiment in recent weeks. This unfavorable market condition has consistently caused the second-largest cryptocurrency to trade beneath the $1,700 level.

Could Ethereum Price Fall To $1,200?

In an X post dated Wednesday, September 6, crypto analyst Ali Martinez offered insight on the price of Ethereum. The analyst shared that the value of ETH faces a potential significant correction to $1,200 if it stays below $1,680.Ethereum

Using data from the blockchain analytics platform IntoTheBlock, Martinez’s projection revolves around the purchasing areas where most investors acquire ETH. According to the analytics platform, the price zones beneath the range of $1,633 to $1,681 are “weak purchasing areas,” which hint at weak support. 

IntoTheBlock data shows few investors bought ETH beneath this level – down to the $1,385 price range. This ultimately implies that the support is thin around those levels – as indicated by the small size of the green circles in the image above.

With weaker support at the lower price ranges, the Ethereum price might be unable to stay afloat should bearish pressure increase. This explains why crypto analyst Ali Martinez believes the ETH price beneath $1,680 is a source of concern for traders. 

Meanwhile, the significant percentage of holders currently at a loss exacerbates this risk. Some ETH investors may choose to sell their assets to cut their losses, which could trigger downward pressure on the cryptocurrency’s price.

This Smart Whale Purchased 19,500 ETH – What Do They Know?

On a positive note, an Ethereum whale has been purchasing ETH in the past two days, according to the on-chain analytics platform Lookonchain.

On Tuesday, the 5th of September, the analytics platform revealed that the whale deposited $36 million USDC on Binance and withdrew 9,819 ETH (worth $15.9 million at the time). 

Subsequently, the whale withdrew 9,689 ETH (worth $15.8 million) from Binance on Wednesday, bringing their total purchase to 19,506 ETH (equivalent to $32 million).

Typically, when large amounts of cryptocurrencies are moved out of centralized exchanges, it indicates that whales are accumulating – and sometimes anticipating a price rally. 

Moreover, looking at this particular whale’s past transactions shows that they have the habit of buying Ether at low prices and selling at high prices to make a profit. 

Hence, this latest transaction suggests that the whale is expecting a bounce. However, it is worth noting that the price of Ethereum has not changed in the past day.

According to CoinGecko data, the Ether token currently trades at $1,624.35, with a 0.8% price decline in the last 24 hours.

Ethereum