Spot ETF Approval Isn't Going To Slow Down Bitcoin: Why Prices Could Climb To $1 Million Per Coin

Bitcoin BTC/USD is up 160% since the start of the year, and the rally is nowhere close to over, according to the Chamber of Digital Commerce founder and CEO Perianne Boring.

The world's largest cryptocurrency, Boring says, could be on the path to $1 million per coin.

What To Know: Much of the recent rally in the crypto space has been driven by continued optimism for approval of a spot Bitcoin ETF, which many expect to happen in the coming weeks. 

Given that Bitcoin has run up nearly 65% in just the last three months in anticipation of a spot ETF, some believe the good news is already priced in and are expecting the eventual approval to be a sell-the-news event, but Boring is taking the other side of that bet. 

"A spot Bitcoin ETF will be here soon. It's not an if-event, it's a when-event," Boring said Wednesday on CNBC's "Squawk Box."

The ETF approval is going to allow people who don't have exposure to crypto to buy in without the perceived risks of buying and holding Bitcoin in a wallet. There is still so much pent-up demand for Bitcoin that it's likely to continue to trade higher on the approval, she said. 

Institutional investors will be able to increase their portfolio's Sharpe ratio, which measures risk-adjusted returns, by adding just a small amount of Bitcoin, she explained.

"When you add a small amount of Bitcoin to an investment portfolio, the risk goes down, as well as the volatility goes down and that's why the Sharpe ratio goes up," Boring said. 

"That is why there is so much interest in this asset class."

Related Link: Cathie Wood Outlines Role Of Bitcoin Post ETF Approval, Praises 21Shares: 'The Plumbing Works'

So What's It Worth? Boring told CNBC that the Chamber of Digital Commerce uses valuation metrics to try to determine the actual value of Bitcoin instead of just looking at the price that it trades for on exchanges. 

Based on the group's four valuation models, the current value of Bitcoin is somewhere between $100,000 and $210,000 per coin, she said.

That valuation is set to trend higher as more and more people adopt Bitcoin, given its limited supply. Currently, about 40% of households have exposure to the asset, but we are on pace to see 90% adoption by 2029, Boring said.

"Once we hit that 90% adoption, prices could go as high as $1 million a coin," Boring said.

$BTC Price Action: Bitcoin was up approximately 2% over the last 24-hours, trading at $43,161 at the time of publication, according to Benzinga Pro.

Photo: Eivind Pedersen from Pixabay.