[Approval of BTC ETF may add $1 trillion in market value to the crypto market]

Since the advent of Bitcoin, the cryptocurrency market has been in the spotlight. Recently, discussions about approving a Bitcoin exchange-traded fund (ETF) have heated up again, and observers predict that if approved, this will bring huge benefits to the crypto market.

First, the approval of a Bitcoin ETF would inject significant capital into the crypto market. Since ETFs are a convenient investment tool, they will attract more traditional investors into the crypto space. These new inflows will drive the overall size of the crypto market and create more buying demand for crypto assets such as Bitcoin. According to some expert estimates, this could add approximately $1 trillion in market capitalization to the crypto market.

Secondly, the approval of a Bitcoin ETF will increase the level of transparency and compliance in the market. Currently, there is a degree of uncertainty and regulatory risk in the crypto market. However, as part of traditional financial markets, ETFs need to meet specific regulatory requirements and transparency standards. Once approved for implementation, Bitcoin ETFs will be fully regulated and investors can participate with greater confidence.

Third, the approval of Bitcoin ETF will promote the legalization and formalization of the crypto market. Currently, many countries have reservations about cryptocurrencies and have even banned or restricted their transactions. However, if the Bitcoin ETF is approved, it will be seen as recognition of the cryptocurrency market, thus promoting the introduction of relevant legislation and regulation. This will lay a solid foundation for the development of the crypto market and pave the way for cryptocurrency adoption in more countries.

A recent study conducted by on-chain analytics firm CryptoQuant suggests that the introduction of a BTC ETF could significantly increase the market capitalization of the Crypto industry by approximately $1 trillion.

The company said that while the ETFs are not expected to be approved in the near future, recent favorable court rulings in Grayscale’s case against the SEC over its GBTC fund and possibility of obtaining approval before the deadline.

CryptoQuant predicts that once these ETFs are finally approved, approximately $150 billion will flood into the BTC market, and the BTC market value may increase by $450 billion to $900 billion.This growth is expected to occur as more institutional and retail investors accept Crypto assets.

To support its argument, CryptoQuant highlighted that during the bullish phase, inflows of new capital lead to an increase in realized market capitalization, as BTC changes hands for a higher price than its initial purchase price.

At the same time, market capitalization will also experience faster growth due to market price revaluation. It is worth noting that historical data shows that during previous market peaks, such as December 2017, March and November 2022, BTC market capitalization expanded by 3 to 5 times, indicating that for every $1 of new investment, the market capitalization That's an increase of $3 to $5.

The research also highlights that the expected surge in market capitalization will exceed the inflows into GBTC funds during the last bull cycle. GBTC is currently the largest BTC fund, holding over 620,000 BTC.

Furthermore, the analysis also suggests that the expected growth in BTC market capitalization could lead to a significant increase in BTC price, ranging from $50,000 to $73,000.

All in all, the approval of a Bitcoin ETF is expected to bring huge growth opportunities to the crypto market. Through an infusion of capital, increased levels of transparency and compliance, and a push for legalization and formalization, the crypto market could see a $1 trillion market cap growth. However, it needs to be emphasized that investors should always be aware of risks and conduct sufficient research and evaluation before making decisions.