Some crypto analysts are betting on Bitcoin’s rapid growth. Analysts at Motley Fool believe that institutional investors could propel a stunning rally of the flagship crypto. In early 2024, the US Securities and Exchange Commission eventually approved spot Bitcoin ETFs in the US after painstaking scrutiny. This landmark decision promoted Bitcoin’s international recognition and its investment appeal.
In essence, Bitcoin ETFs enable retail investors and large investment firms to buy the number one crypto circumventing crypto exchanges. As a result, this simplified access to the most popular cryptocurrency. Analysts at Motley Fool found out that Bitcoin came under the spotlight of pension and hedge funds managing multi-billion-dollar assets. They can add Bitcoin to their investment portfolios through crypto ETFs.
According to Motley Fool’s estimates, almost 700 investment firms have invested nearly $5 billion in crypto ETFs. For instance, Millennium Management has allocated 3% of its investment portfolio worth $64 billion for Bitcoin-related ETFs. Morgan Stanley and Bracebridge Capital also decided to buy the new exchange product. The State of Wisconsin Investment Board (SWIB) invested $164 million in spot Bitcoin ETFs with well-known asset management firms BlackRock and Grayscale Bitcoin Trust.
However, institutional investors account for only 10% of the total Bitcoin ETF holders. Large firms carefully select investment instruments. So, they buy the new crypto product to check how exactly their investment portfolios will benefit from it. Crypto experts at Motley Fool predict that even modest BTC purchases by institutional investors will contribute to the steady uptrend of the flagship crypto. If top-ranked asset management firms invest in Bitcoin roughly 5% of their assets to the tune of $129 trillion, Bitcoin’s market capitalization will top $7 trillion. Bearing this scenario in mind, the ambitious forecast of $400,000 for Bitcoin’s price looks realistic, Motley Fool reckons.