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Coinbase Research Analysis on Bitcoin Market Outlook
Coinbase research analysts project adequate support for Bitcoin (BTC) in the market for the next three to six months due to institutional inflows. The institutional research arm of the digital asset exchange explained the trajectory of Bitcoin, Ethereum, and other on-chain data post-ETF approvals in a recent report.
Institutional Support for Bitcoin
Following the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission on Jan 10, events in the market have been dominated by ETF narratives. The Bitcoin market has recorded significant inflows following the launch of ETFs, propelling the asset’s price above $52,000. Bitcoin has not traded above that range since December 2021, tapping yearly highs as market activity rebounds.
Spot ETFs Lead to Bitcoin Inflows
According to the report, the newly approved ETFs have raked in net inflows of $3.3 billion since launch. This has led to a surge in Assets Under Management (AUM) to $36.8 billion and the wider crypto AUM tapping $58 billion.
Institutional Investment Outlook
Last week, CoinShares reported weekly inflows into Bitcoin institutional funds at over $1 billion, 98% of the market’s inflow. Institutional Investment Could Trigger ETH Price Spikes. Coinbase analysts expect more institutions to turn their attention to Ethereum in the coming months due to the success of Bitcoin ETFs.
Potential Spot Ethereum ETF
A potential spot Ethereum ETF would also be a game-changer for the assets whose growth has been eclipsed by Bitcoin. With the success of BTC ETFs, Ethereum is next for most institutions looking to onboard traditional investments to the market.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
