According to the experts at JMP Securities, spot bitcoin ETFs might receive $220 billion in investment over the next three years. JMP increased its price objective for Coinbase shares from $220 to $300, citing the company's strong positioning. Separately, JPMorgan, a behemoth on Wall Street, predicted $62 billion in bitcoin ETF inflows over the next 2-3 years.
According to a research report released on Wednesday by broker JMP Securities, the price of bitcoin may quadruple to $280,000 when the multiplier is applied to incoming money, since spot bitcoin exchange-traded funds are projected to receive $220 billion in inflows over the next three years.
If the inflow predictions put forth by JMP are accurate, cryptocurrency exchange Coinbase (COIN) will be in a strong position, according to the analysts. Even though they kept their market outperform rating, the firm increased their price objective for the stock from $220 to $300—the highest among Wall Street analysts, according to Factset data. As of this writing, a share in Coinbase was selling for $262.92, a 2.6% increase.
The $10 billion in spot bitcoin ETF inflows in the two months after launch have surpassed expectations. However, according to JMP, the "activity (and flows) experienced thus far is likely still the tip of the iceberg." Moreover, flows will continue to grow materially as the approval of ETFs was just the beginning of a "longer process of capital allocation."
Analysts under Devin Ryan's leadership predicted that $220 billion will enter exchange-traded funds (ETFs) during the next three years, a development that might have a significant influence on the price of bitcoin due to the capital multiplier.
This could cause a $5.5 trillion increase in the market cap of bitcoin, or $280,000 per bitcoin, according to the authors' calculations, assuming they are correct about the level of net ETF inflows reaching $220 billion and using their current estimate of the new capital multiplier of approximately 25 times
According to data collected by BitMEX research, spot bitcoin ETFs had net inflows of 14,706 bitcoin, worth over $1 billion, on Tuesday, setting a new daily record.
According to a research last week by JPMorgan, a separate study predicts that the market for bitcoin spot exchange-traded funds (ETFs) might reach $62 billion in the next 2-3 years.
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