Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Bitcoin Spot ETFs Could Bring $30B in New Demand, Crypto Trader NYDIG Says

Bitcoin Spot ETFs Could Bring $30B in New Demand, Crypto Trader NYDIG Says

CoindeskCoindesk2023/07/20 06:39
By:Sam Reynolds

A lot can be learned from the listing of the first Gold ETF, but looking to the past also comes with some caveats.

Bitcoin (BTC) spot-based exchange-traded funds (ETFs) could bring $30 billion in new demand for the world’s largest digital asset, according to crypto trading firm NYDIG's .

The spot-ETF fever has gripped the crypto market in recent weeks, thanks to filings by BlackRock (BLK), Fidelity and others.

“The brand recognition of BlackRock and the iShares franchise, familiarity with purchase and sale methods through securities brokers, and simplicity of position reporting, risk measurement, and tax reporting, a spot ETF could bring some noted benefits compared to existing alternatives,” NYDIG writes in its report.

Already, NYDIG has modeled that there are $28.8 billion in bitcoin assets under management with $27.6 billion in spot-like products.

(NYDIG)

Bitcoin is often called digital gold, so there are bound to be comparisons to gold ETFs listed in the early 2000s. Currently, gold ETFs hold only 1.6% of the total global gold supply, NYDIG points out, compared to central banks at 17.1%, while bitcoin funds hold 4.9% of the total bitcoin supply.

There’s a massive gulf in demand for the digital and analog version of the asset in funds: there’s over $210 billion invested in gold funds while only $28.8 billion in bitcoin funds.

“Bitcoin is about 3.6x more volatile than gold, meaning that on a volatility equivalent basis, investors would require 3.6x less bitcoin than gold on a dollar basis to get as much risk exposure. Still, that would result in nearly $30B of incremental demand for a bitcoin ETF,” NYDIG writes.

The newsletter Ecoinometrics has a on a bitcoin ETF.

GLD ETF filled a significant void in the market, Ecoinometrics writes, providing an easily tradable product that tracked the price of physical gold.

However, comparisons between gold ETFs and bitcoin ETFs are potentially misleading as the significant rise of gold during that time was largely due to a favorable macro environment and a weakening dollar. Remember the war on terror, China’s rise, and the beginning of a ballooning U.S. deficit all packed into a decade?

"So while the GLD ETF definitely didn’t hurt and probably brought some nice inflow to the gold market, macro was really in the driver’s seat over that period," they write. "A spot Bitcoin ETF can help with drumming up more interest into Bitcoin and will undoubtedly attract some fresh money into the space. But that won’t make one Bitcoin worth $100k single-handedly."

The real potential for a Bitcoin ETF lies in a convergence of factors: the launch of the ETF, a weaker US dollar, a Federal Reserve move towards Quantitative Easing, and a generational wealth transfer to younger individuals more likely to invest in crypto, they write.

And now,

Edited by Omkar Godbole and Parikshit Mishra.

97

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

VIPBitget VIP Weekly Research Insights

As the crypto market recovers in 2025, Digital Asset Treasury (DAT) firms and protocol token buybacks are drawing increasing attention. DAT refers to public companies accumulating crypto assets as part of their treasury. This model enhances shareholder returns through yield and price appreciation, while avoiding the direct risks of holding crypto. Similar to an ETF but more active, DAT structures can generate additional income via staking or lending, driving NAV growth. Protocol token buybacks, such as those seen with HYPE, LINK, and ENA, use protocol revenues to automatically repurchase and burn tokens. This reduces circulating supply and creates a deflationary effect. Key drivers for upside include institutional capital inflows and potential Fed rate cuts, which would stimulate risk assets. Combined with buyback mechanisms that reinforce value capture, these assets are well-positioned to lead in the next market rebound.

Bitget2025/09/12 06:52
Bitget VIP Weekly Research Insights