The approval of a Bitcoin spot exchange-traded fund (ETF) in the U.S. could trigger up to $70 billion in fresh capital for cryptocurrencies, according to blockchain data firm Glassnode.

In a recent report, Glassnode estimates significant pent-up demand from major institutions could flow into Bitcoin if a spot ETF is greenlit by regulators. The analysis shows $70.5 billion could migrate from stocks, bonds and gold as large investors allocate a fraction of holdings.

A spot Bitcoin ETF would provide direct ownership instead of derivatives, potentially drawing major reallocations even from existing crypto funds. Historical data reveals new regulated access tends to spur asset growth.

Yet Bitcoin's supply dynamics may heighten volatility risks, Glassnode warns. Prolonged accumulation has tightened circulating coin availability as over 76% now sits in long-term holder wallets less reactive to price swing.