VanEck Says $2.4B Will Flow Into Spot Bitcoin ETFs in 1Q

The firm based its bitcoin forecast on SPDR Gold Trust (GLD) ETF inflows.

LucyBrewster310x310
|
Finance Reporter
|
Reviewed by: etf.com Staff
,
Edited by: Kent Thune

VanEck, the ETF issuer with $64 billion in its 68 ETFs, projects that the U.S. will approve the long-awaited spot bitcoin ETF in early 2024and that the product will see inflows in the billions during first months after its approval.

“As debt levels are more concerning at the sovereign than corporate or household levels, we expect more than $2.4 billion will flow into newly approved U.S. spot Bitcoin ETFs in Q1 2024 to keep the bitcoin price elevated,” wrote Matthew Sigel, VanEck’s head of digital assets research and Patrick Bush, senior investment analyst, in the company’s crypto market forecast for 2024.

VanEck Spot Bitcoin ETF Ticker, Forecast

While the Securities and Exchange Commission has approved ETFs that track bitcoin and ether futures, the agency has just started to advance various filings to launch the first ETF that tracks physically backed bitcoin. As one of the first firms to file for a spot bitcoin ETF in June 2018, VanEck unveiled its potential ticker for the fund last week: HODL, a likely nod to the crypto expression, “hold on for dear life.” The SEC rejected VanEck’s previous proposal for a spot bitcoin ETF in November 2021.

The firm also projected an all-time high bitcoin price high in the fourth quarter of 2024. “In the second half of 2024, Bitcoin will climb a presidential-sized wall of worry,” the authors of the report wrote.

The firm also projected that Binance will lose market share in the spot trading industry to firms such as Bybit, Coinbase and Bitget after the exchange settles with U.S. regulators.

VanEck’s largest fund, the VanEck Gold Miners ETF (GDX), has $12.8 billion in assets.

Contact Lucy Brewster at [email protected].

Lucy Brewster is a finance reporter at etf.com covering asset managers, emerging technologies, and regulation. She hosts etf.com webinars and appears on Exchange Traded Fridays, etf.com’s flagship podcast. She previously was a finance fellow at Fortune Magazine where she covered markets, investment strategy, and venture capital. She has also been a freelancer writer at the publication Mergers & Acquisitions and a research fellow at the Historic Hudson Valley. 

She graduated from Vassar College in 2022 with a degree in History and was an editor of The Miscellany News, the college's award winning student run newspaper. 

Lucy lives in Brooklyn, NY, and in her free time she loves to run and find new recipes to cook.