Bitcoin (BTC) is poised for a potential positive demand shock in the coming months, driven by new capital inflows from registered investment advisors (RIAs), according to one analyst.
A positive demand shock is a situation characterized by a sudden increase in demand for an asset such as BTC. This can be triggered by a significant inflow of capital into a particular market.
CoinShares Research Manager James Butterfill announced that he identified a dynamic that could accelerate such an event. He noted that spot Bitcoin ETFs have not yet been introduced to the registered investment advisor market. “Typically, the fund platforms used by RIAs require three months of transaction data before incorporating newly issued ETFs. As a result, we may see a wave of investment from the RIA market as it becomes available,” he explained.
The analyst noted that currently only one investment advisory firm, Carsen Group, allows trading of spot Bitcoin ETFs. “Given that the RIA market represents approximately $50 trillion in assets, potential inflows could be significant. For example, if 10% of RIAs choose to invest in 1% of their portfolio, this could lead to approximately $50 billion in additional inflows,” he added.
*This is not investment advice.
