James Butterfill, Research Director at CoinShares, revealed the factor that could bring billions of dollars of new inflows to Bitcoin in the coming months.
Speaking recently to The Block, Butterfill explained where potential inflows could come from, pointing out that Bitcoin has yet to offer registered investment advisors (RIAs) spot Bitcoin exchange-traded funds (ETFs). He emphasized that this could become a reality in the coming months.
Butterfill also pointed out that if spot Bitcoin ETFs were offered to RIA, it could lead to a significant surge in demand, which would naturally have a positive impact on the price.
Considering that the RIA market represents about $50 trillion in assets, potential inflows could be significant. For example, if 10% of RIAs chose to invest 1% of their portfolios, this could result in an additional inflow of about $50 billion.
In a recent blog post, Butterfill focused on the demand for spot Bitcoin ETFs and Bitcoin’s supply. According to data, since the launch of spot Bitcoin ETFs, there has been an average daily demand of 4500 Bitcoins, while the daily mined Bitcoin amount exceeded 921.
He added that the newly minted Bitcoin supply may not meet demand, and ETF issuers would need to source Bitcoins primarily from the secondary market. He also expressed that this situation could skyrocket the price of Bitcoin.
