Bitcoin’s $45k pricing discrepancy amid surging ETF inflows

Andrew Kang, an investor with 20 years of finance experience, recently went to X/Twitter to talk about BTC’s price movement.

Kang is firmly convinced that Bitcoin, at $45,000, is still mispriced. According to the veteran, BTC should be priced higher, given the halving excitement and incoming ETF inflows.

The consensus in the market is that a Bitcoin ETF will result in a long-term bullish run for Bitcoin. This is indeed correct, but the incoming ETF flows surrounding BTC are still underappreciated, added Kang.

Bitcoin is currently priced at $45,310, with a 6.80% growth in the past 24 hours. According to CryptoNewsZ’s BTC price prediction, the coin can even cross the $100,000 mark by the end of 2025.

That is why the current pricing for crypto seems misaligned. Gold ETFs have $120 billion in AUM with a 0.6% average expense ratio. That amounts to $720 million per year, indeed. The net present value of these fees amounts to $10 to $20 billion.

Thus, ETF issuers will start competing from day 1 to capture an industry worth $10–20 billion in fees alone. Every market dollar invested in 2024 will be more crucial than in 2025. This is because customers rarely switch between ETFs after choosing one.

Asset management allows customers to increase their value over time. An investor buying $1,000 worth of BTC today can have a position of $250,000 in 10 years.  The current timeline for BTC is ripe, so a market value of $45,000 is staggering.

It seems even worse when considering that Blackrock is filing for a Bitcoin spot ETF with a 99.8% approval track record. The SEC is expected to release its first wave of approvals in January 2024. If all goes well, BTC might very well break through its all-time high in a couple of months. 

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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