Spot bitcoin (BTC) exchange-traded funds might see $220 billion of inflows over the following three years, which suggests BTC’s value might quadruple to $280,000 when making use of the multiplier on new capital, dealer JMP Securities stated in a analysis report Wednesday.

JMP analysts stated crypto trade Coinbase (COIN) stays well-positioned if their influx estimates show to be right. The dealer raised its value goal on the inventory to $300 from $220, the best amongst Wall Avenue analysts, based on Factset knowledge, whereas sustaining its market outperform ranking. Coinbase shares had been buying and selling 2.6% larger at $262.92 at press time.

Whereas spot bitcoin ETF inflows have smashed expectations, reaching $10 billion simply two months after launch, JMP stated that “exercise (and flows) skilled to this point is probably going nonetheless the tip of the iceberg,” including that flows will proceed to develop materially as ETF approval was only the start of a “longer means of capital allocation.”

“We estimate $220B of incremental flows will come into the ETFs over the following three years, which is also fairly impactful to bitcoin’s value given the multiplier on capital,” analysts led by Devin Ryan wrote.

“If we’re directionally right on the extent of internet ETF inflows reaching $220B, making use of our estimate of the present multiplier of recent capital of ~25X, this alone might drive a $5.5T bitcoin market cap improve, or $280Ok per bitcoin,” the authors wrote.

In a brand new every day report, spot bitcoin ETFs noticed internet inflows of 14,706 bitcoin, value over $1 billion, on Tuesday, based on knowledge tracked by BitMEX analysis.

A separate JPMorgan evaluation prompt that the bitcoin spot ETF market might develop to round $62 billion within the subsequent two to 3 years, the financial institution stated in a report final week.

Learn extra: Bitcoin Is Unlikely to Match Gold’s Allocation in Traders’s Portfolios in Nominal Phrases: JPMorgan