Bitwise, a crypto asset management firm, has made a bullish prediction about Bitcoin's price, forecasting it to exceed $80,000 by 2024. The firm has attributed this potential surge to two main factors—firstly, the upcoming Bitcoin Halving event, and secondly, the expected launch of a spot Bitcoin exchange-traded fund (ETF) in the U.S. Bitwise stated that the launch of the spot Bitcoin ETF is anticipated to attract new capital from both retail and institutional investors, leading to increased demand for Bitcoin. Additionally, the supply of new Bitcoin produced each year will halve following the next Bitcoin halving event, which is expected in April or May 2024.
Bitwise also predicted the approval of spot Bitcoin ETFs, projecting it to be the most successful ETF launch ever. The firm believes that this approval would significantly impact the market and attract substantial assets, potentially capturing 1% of the $7.2 trillion U.S. ETF market, amounting to $72 billion within five years. Bitwise's spot Bitcoin ETF ticker, listed as $BITB, is now available on the official website of the Depository Trust and Clearing Corporation (DTCC), marking a significant milestone for the firm's application pending the decision of the U.S. Securities and Exchange Commission (SEC).
In response to the developments in the market, Bitwise amended its spot Bitcoin ETF application, transitioning solely to cash creation and redemption—a crucial change aligned with the apparent instruction from the SEC to shift from an in-kind to a cash model. This move was highlighted by Bloomberg ETF analyst James Seyffart, who noted that Bitwise had been set for ONLY cash creates/redeems since December 4th, despite previously having In-Kind or Cash in their documents. As of the current market data, Bitcoin was trading at $43,030.06, with a 24-hour trading volume up by 18.61% at $28,530,801,770. Its recent price action represented a 0.78% spike in value in the past 24 hours and a 0.8% gain over the last seven days. The circulating supply of Bitcoin stands at 19,569,937 BTC, and its market cap is $842,651,556,578.