ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Crypto Channel
  2. ETF & 2024 Halving Could Be Epic Catalysts for Bitcoin
Crypto Channel
Share

ETF & 2024 Halving Could Be Epic Catalysts for Bitcoin

Tom LydonJul 31, 2023
2023-07-31

A spot bitcoin exchange traded fund in the U.S. is far from a guaranteed proposition. However, there’s no denying the largest digital currency will see another halving in April 2024. Either or both events could be potential upside catalysts.

That’s the sentiment of research firm Fundstrat. In a note out earlier this week, Fundstrat forecast that bitcoin could surge to $180,000, roughly six times current prices, ahead of the April 2024 halving. Price appreciation anywhere close to that would likely stir significant upside for shares of bitcoin miners, including those residing on the roster of the Invesco Alerian Galaxy Crypto Economy ETF (SATO ).

Fundstrat also echoed now-familiar sentiment that should the Securities and Exchange Commission (SEC) approve a spot bitcoin ETF, the ensuing reaction would be overtly bullish for bitcoin prices. That could be a positive for SATO’s roster, which is highly correlated to bitcoin price action.

“This [bitcoin ETF launch] would bring daily demand to $125 million, while daily supply is only $25 million. The implied equilibrium price would need to rise so daily supply matches daily demand. Equilibrium analysis suggests that a clearing price is $140,000 to $180,000, before the April 2024 halvening,” according to Fundstrat.

Halving Alone Could Be Bullish for SATO

While the prospects for a U.S.-listed spot bitcoin ETF very much remain up in the air, the halving alone could be a spark for the cryptocurrency and SATO member firms. While halvings cut rewards given to miners, the events aim to keep a lid on supply, which is bullish for bitcoin pricing.

Should the multiplier effect following the halving be in the range of 4x to 5x, that could provide considerable ballast to bitcoin prices.

“This means that $1 of demand can result in a $4 to $5 increase in market cap,” Sean Farrell, Fundstrat’s head of digital asset strategy, noted.

He put the odds of spot bitcoin ETF approval at 75%, noting that if BlackRock brings the first such fund to market, it’s likely to be one of the biggest ETF launches in industry. Looking further out, Farrell estimated that the spot bitcoin ETF category could eventually eclipse the precious metals ETF space, which currently has approximately $230 billion in combined assets under management.

A spot bitcoin ETF or ETFs would stoke demand for bitcoin because issuers would need to purchase the digital currency, in turn driving prices higher. That could benefit SATO.

VettaFi LLC (“VettaFi”) is the index provider for SATO, for which it receives an index licensing fee. However, SATO is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of SATO.

For more news, information, and analysis, visit the Crypto Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X