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Bloomberg analysts estimate spot Bitcoin ETF market to hit $100b

Sources close to Mike Novogratz’s Galaxy Digital say the firm already held a call with hundreds of investment firms about allocating to Bitcoin.

Although the U.S. Securities and Exchange Commission (SEC) is yet to approve a spot Bitcoin (BTC) exchange-traded fund (ETF), experts say the market might eventually gain $100 billion from Wall Street investors.

As per Bloomberg’s sources familiar with the matter, Galaxy Digital, a crypto bank founded by Bitcoin bull Mike Novogratz, held a call earlier this month with roughly 300 investment professionals about doubling down on Bitcoin. The outcome of those talks remain unclear, but Jeff Janson, Advisor at Summit Wealth Partners, told Bloomberg his firm has already received calls from young and old investors.

“I feel like we are now staring down the gun barrel of the SEC finally delivering approval. And my belief is that once you have access to it in that type of a wrapper, I think you’re going to have a significant amount of institutional-level interest.”

Jeff Janson

According to Galaxy’s estimations, the addressable market size of a U.S. Bitcoin ETF might be $14 trillion just one year following an ETF launch, reaching a staggering $39 billion mark by the third year post-launch.

Bloomberg analysts estimate spot Bitcoin ETF market to hit $100b - 1
Bitcoin Spot ETF market size | Source: Galaxy Digital

Poor price performance as well as other factors might lead to lower-than-expected access or adoption, Galaxy analysts pointed out.

“On the other hand, we believe our assumptions on access, exposure, and allocation are conservative, so inflows could also be higher than expected.”

Charles Yu, Research Associate at Galaxy Digital

The SEC continues to delay ETF application approvals, citing the prevailing uncertainty regarding the approval of such crypto-based investment products. BitGo CEO Mike Belshe anticipates more challenges for the market, addressing unresolved market structure issues as a significant hurdle.

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