Glassnode: If Bitcoin spot ETF is approved, it may bring in $70 billion in capital inflows

Glassnode researchers pointed out in a report published on November 20 that if the Bitcoin spot ETF is approved, the influx of demand will challenge the relatively limited supply of liquid Bitcoin, which may expand volatility. Research from Glassnode shows that there is significant pent-up demand for spot Bitcoin ETF products. Analysts estimate that investors in stocks, bonds and gold would have to allocate only a small portion of their assets to see as much as $70.5 billion flow into the market. Even more conservative projections would see tens of billions of dollars entering the market in the first few years. Glassnode’s research report explains that in order to understand the market dynamics that may arise following the launch of the ETF, attention now needs to turn to Bitcoin’s available supply. Currently, more than 76% of Bitcoins are held for the long term, concentrated in the hands of holders who are less responsive to price fluctuations. Research from Glassnode shows that the supply of short-term and active traders has recently hit multi-year lows. (Bitcoin.com)