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Global Bitcoin ATMs sink to 2021 lows – Can BTC ETFs save the industry?

Bitcoin

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TL;DR

  • With the ongoing crypto winter and unstable market regulations, data shows that global Bitcoin ATMs installations have plummeted to the lowest level since 2021.
  • Since 2022, the number of installed BTC ATMs has dropped by 7,000, indicating a 17% drop.
  • Crypto market analysts state that the approval of spot Bitcoin Exchange Traded Funds (ETFs) could mean a better future for Bitcoin in the crypto space. 
  • A report by Matrixport explains that the ETF approval could surge Bitcoin’s price with the lowest end at $42,000.

The crypto world has its fair share of up and down surges, as witnessed by events in recent years. Bitcoin has long since solidified its position and has been a force to reckon with, as it has fostered many innovations in the digital space. However, there are other developments it has made that have gone under the radar. 

One such innovation is the Bitcoin Auto Teller Machines (ATMs) commonly termed as BTMs. These innovations have been widespread all across the globe, but recent data shows the dwindling use as the number of Bitcoin ATMs has plummeted to the lowest level since 2021. 

However, the approval of spot Bitcoin Exchange-Traded Funds (ETFs) could mean a better future for Bitcoin in the crypto space. 

Bitcoin ATMs take a global nosedive 

Bitcoin ATMs have been an essential bridge in linking fiat or physical cash and digital currencies. In this case, bitcoin ATMs serve to offer Bitcoin exchange of BTC tokens to fiat, or vice versa. BTMs have made BTC more accessible to anyone around the globe. However, the number of BTC ATMs has reduced, hitting its all-time low since 2021. 

Since 2022, the number of installed BTC ATMs has dropped by 7,000, indicating a 17% drop. This is according to data from AltIndix reported on Wednesday. Currently, the number of installed BTC ATMs is recorded at 32,500 this year. 

The United States holds the highest number of BTMs, and the numbers also show a decline in their installation across the region. It has a higher number 18 times the ATMs installed across Europe, which hosts over 1,400 BTMs. 

There are various reasons that have led to this decline in installations, among them being scammers placing ads on sites like eBay and asking buyers to deposit funds in BTC on specific BTC wallets. The funds later vanished. 

According to Brandon Mintz, the Chief Executive Officer  (CEO) and founder of the publicly traded bitcoin ATM operator Bitcoin Deport (BTM) stated that the dwindling number of BTMs is based on ATMs going out of business or closure of unprofitable BTMs. He was quoted stating:

This creates an opportunity for us that allows us to further increase market share through acquisitions and organic kiosk growth in additional retail locations.

Brandon Mintz

Bitcoin’s rise based on ETF approval

The recent news sentiments on the crypto Exchange Traded Funds have been long awaited, and its approval by the SEC could mean a lot for the crypto community. Upon approval of the BlackRock spot BTC ETF, BTC’s price could surge to a peak close to $56,000, just shy of its all-time high. The Matrixport report stated:

Assuming that 10-20% of those precious metals ETF investors seek to diversify their investments into BTC. We can estimate potential inflows of $12-24 billion into the BTC ETF. While the market cap of GBTC is currently only $17-18 billion, it reached a peak of $44 billion. Therefore, our estimate of $12-24 billion is relatively conservative.

Matrixport report

After BlackRock filed for its spot BTC ETF in mid-June on the 15th, BTC’s price rose from $24,800 to $30,000 in a span of just 7 days. Matrixport also reported, “15,000-strong U.S. registered investor advisor (RIA) community is overseeing around $5 trillion. This group holds immense potential, and even a modest 1% allocation recommendation for Bitcoin would usher in around $50 billion in inflows.”

According to Matrixport, a crypto service provider, their report on Thursday explained that the ETF approval could surge BTC’s price with the lowest end at $42,000. This is based on data assumptions that 10%-20% of investors in gold ETF are likely to support the spot BTC ETF. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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