The Bitcoin Spot ETF Boom: VanEck Forecasts $2.4 Billion Inflows In Q1 2024

Samuel Edyme

1 year ago

3 mins read

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The crypto market is on the brink of a potentially game-changing shift, as investment management firm VanEck predicted. In a recent analysis, VanEck forecasts a substantial inflow of funds into Bitcoin spot exchange-traded funds (ETFs), expecting more than $2.4 billion to be injected in the first quarter of 2024 alone.

This bullish prediction aligns with the anticipated launch of the first Bitcoin spot ETF in the US, which could positively change the crypto landscape.

Bitcoin Bullish Forecast

This forecast emerges against a backdrop where investors are increasingly gravitating towards ‘hard money’ assets, those which remain largely unaffected by the whims of US authorities, as indicated by VanEck

In this context, Bitcoin emerges as a particularly appealing option due to its “resilience” and limited correlation with conventional financial markets.

Despite the expected market volatility, VanEck’s analysts maintain strong confidence in Bitcoin’s market stance, projecting that its price will unlikely fall below the $30,000 mark in early 2024.

Bitcoin (BTC) price chart on TradingView — Bitcoin (BTC) price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

VanEck’s report delves further into Bitcoin’s future, highlighting the significance of the upcoming Bitcoin halving in April 2024. This event is anticipated to “proceed without a major fork or missed blocks” catalyzing a surge in Bitcoin’s value.

Unsurprisingly, the firm predicts that November 9, 2024, could witness Bitcoin attaining a new all-time high three years after its last peak.

Bitcoin cycle price peaks. | Source: VanEck

VanEck added that such a milestone could even see Bitcoin’s mysterious creator, Satoshi Nakamoto, being named Time Magazine’s “Man of the Year,” particularly if Bitcoin reaches the $100,000 threshold.

VanEck 🤝 15 Crypto Predictions for 2024

Prediction #1. The US recession will finally arrive, but so will the first spot #Bitcoin ETFs. Over $2.4B may flow into these ETFs in Q1 2024 to support Bitcoin’s price.

— VanEck (@vaneck_us) December 7, 2023

Ethereum And Solana’s Rising Tide: VanEck’s Perspective On Altcoin Market Dynamics

In contrast to Bitcoin’s expected dominance, VanEck casts a different light on Ethereum’s future. The firm anticipates that while Ethereum will not surpass Bitcoin in market cap in 2024, it is likely to outperform every major tech stock.

However, Ethereum is projected to face challenges from other smart contract platforms like Solana, which present fewer uncertainties regarding scalability. VanEck’s analysis suggests that while Ethereum will show strong performance, it will lose market share to these emerging platforms.

The report also touches upon geopolitical implications for Bitcoin. Countries like Argentina are expected to follow El Salvador’s lead by sponsoring state-level Bitcoin mining and leveraging their energy resources.

This trend, combined with Bitcoin’s regulatory clarity and energy intensity, is predicted to draw attention from quasi-state entities in Latin America, the Middle East, and Asia.

According to VanEck’s insights, the post-halving period will see a market rally led by Bitcoin, with value eventually flowing into smaller tokens.

Lastly, VanEck casts a spotlight on Solana, predicting its rise to become a top-three blockchain by market cap, Total Value Locked (TVL), and active users. This ascent is anticipated to fuel Solana’s entry into the spot ETF wars, with a surge of filings expected from asset managers.

Featured image from Unsplash, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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