The cost of bitcoin (BTC) would perchance well also upward push as excessive as $56,000 if the U.S. Securities and Substitute Commission (SEC) approves the place bitcoin change traded fund (ETF) utility of BlackRock, in keeping with a unique document from crypto products and companies provider Matrixport on Wednesday. BTC currently stands at $28,686.60.

Matrixport additionally draw a low-destroy sign of $42,000 in maintaining with the estimate that 10-20% of merchants in gold ETFs must would prefer to aquire valid into a spot bitcoin ETF.

“Our earlier experiences analysed the 15,000-solid US registered investor advisor (RIA) community overseeing round $15 trillion. This community holds wide potential, and even a modest 1% allocation advice for Bitcoin would usher in round $50 billion in inflows,” Matrixport wrote.

“Drawing a parallel with treasured metals ETFs, estimated at roughly $120 billion in market cap, and assuming that between 10-20% of treasured steel ETF merchants examine a Bitcoin ETF to diversify their monetary debasement and inflation hedges, we would also leer a sizeable $12-24 billion worth of inflows into the Bitcoin ETF,” the firm persevered.

In the week that followed BlackRock’s ETF submitting on June 15, BTC rose from $24,800 to $30,000. Earlier this week, BTC  spiked from $27,900 to about $30,000 after a false rumor that the SEC had licensed BlackRock’s ETF submitting.

Upon a BlackRock ETF approval, Matrixport acknowledged that if the market cap of USDT stablecoin issuer Tether increased by $24 billion, and it used to be aged as a proxy for potential ETF inflows, then the worth of BTC would hit $42,000. With the larger $50 billion inflows from the RIAs, Bitcoin would perchance well also rally to $56,000.