Bitcoin ETFs Could Reach $1.85 Trillion, Implied Price Soars to $488K

Bloomberg senior ETF analyst Eric Balchunas predicts that Bitcoin (BTC) Exchange-Traded Funds (ETFs) will eventually hold three times as much money as gold ETFs. Currently, global gold ETFs have about $615 billion in assets. If this prediction holds true, it would put Bitcoin ETF assets near $1.85 trillion, roughly 19 times from current levels.

According to Balchunas, there are three forces driving his forecast: a younger investor base, institutional money growth, and the power of the distribution machine. He notes that 26% of Americans aged 18-29 and 28% aged 30-49 have used crypto, compared with just 10% of people over 50.

He also points out that professional investors accounted for about 21% of US Bitcoin ETF assets in Q1, while investment advisers held the equivalent of 150,000 BTC. Balchunas expects this trend to continue as Bitcoin ETFs attract more institutional money.

The analyst estimates that if Bitcoin ETF holdings tripled to 3.78 million BTC, the implied price would be around $488,000. However, he emphasizes that this is not a price target and that gold ETF assets can keep growing, while Bitcoin funds could accumulate far more coins.