Bitcoin could see inflows of up to $30 billion after SEC approval

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Bitcoin could see inflows of up to $30 billion after SEC approval

The connection between gold and bitcoin as stores of value is evident, and the demand for BTC as a digital store of value was a big reason why the cryptocurrency grew in popularity, Crypto services provider Matrixport said Monday.

Bitcoin's market capitalization is $540 billion, equivalent to 10.8% of the market cap of physical financial gold, Matrixport said, adding that gold exchange-traded funds are valued at $200 billion.

This is why potential approval by the SEC of a U.S.-listed spot bitcoin ETF could result in inflows of $20-30 billion, potentially causing a large rally in the cryptocurrency, the report said.

In August, the SEC dragged its heels on approving a spot bitcoin ETF, and in August said it was delaying its decision on all new applications until October. The crypto market is hopeful that such a move will spur a flood of mainstream money into the sector.

Bitcoin has advantages over gold because of its ability to memorize the private keys, which eliminates the possibility of confiscation.

The primary roles of the market are likely as a store of value akin to gold and a speculative financial asset, the report said.