Analysts name the factors that will lead to the growth of bitcoin to $ 400,000

Approval of spot bitcoin ETFs is an important step in the recognition of cryptocurrencies. According to analysts at The Motley Fool, this event could eventually push the BTC price to $ 400,000 or even $ 1 million.

ETFs allow retail investors to buy and sell shares that represent the ownership of bitcoin. It is not necessary to actually own BTC — you do not need to understand how cryptocurrency exchanges or wallets work. This makes the process of investing in digital assets more convenient and accessible.

However, the main driver for bitcoin’s growth is not retail investors, but institutional ones. Thanks to ETFs, major players such as pension and hedge funds, which manage huge amounts of money, are entering the digital asset market.

To date, about 700 professional investment companies have invested about $ 5 billion in spot bitcoin ETFs. Among them is Millennium Management, which has allocated about 3% of its portfolio, or $ 64 billion, to shares of exchange-traded funds based on the leading cryptocurrency.

Investors' holdings account for only 10% of the total ownership of spot BTC ETFs. However, the number is only growing, indicating a growing interest.

«After conducting our research, I think they will all come to the same conclusion: the intrinsic characteristics of bitcoin make it an asset that should be held in portfolios. Eventually, widespread adoption among institutional investors will occur, leading to a tsunami of capital hitting the market,» said the Motley Fool analyst.