Sygnum: $1B investments in BTC-ETFs boost Bitcoin price by 3–6%

According to Sygnum’s report, institutional capital has a significant impact on Bitcoin’s price. Every $1 billion invested in BTC-ETFs increases the asset’s value by 3–6%. Interest from major players, such as sovereign wealth funds, endowments, and pension funds, creates the preconditions for a possible "demand shock" in 2025.

What does the crypto market need?

Adoption of favorable legislative initiatives in the US could become a key driver for the crypto industry’s growth. Sygnum analysts highlight two crucial bills: the Financial Innovation and Technology (FIT21) Act and the Stablecoin Payment Act. Regulation of non-custodial wallets, mining, and DeFi is also needed. Until these initiatives are implemented, the growth potential of altcoins will remain limited, despite strong drivers for Bitcoin’s development.

Speculation risks

Sygnum experts pointed out signs of a bubble forming in the memecoin market. The primary reason cited is the weak growth in decentralized application (dApps) users and the limited number of practical use cases, which drives speculative interest.

Recommendations from BlackRock

BlackRock Institute analysts recommended investors allocate 1–2% of their capital to BTC, noting its high return potential. Key advantages of the asset include fast cross-border transfers, decentralization, and resilience to inflation and rising national debt, which diminish the value of traditional currencies.

From November 5 to December 9, US spot Bitcoin ETFs attracted $9.9 billion, raising the total fund asset value to $112.7 billion.