Impact of Bitcoin ETFs on Crypto
VanEck adviser Gabor Gurbacs believes that the launch of Bitcoin (BTC) exchange-traded funds (ETFs) may bring in trillions of dollars to the cryptocurrency over the long term, although the initial impact may be limited to around $100 million from institutional investors.
To illustrate the potential impact of a Bitcoin ETF, Gurbacs pointed to the performance of gold ETFs following their launch. On November 18, 2004, State Street launched the first gold ETF, and in the following eight years, the price of gold quadrupled from $400 to $1,800. This led to the total market cap of gold growing from $2 trillion to $10 trillion.
As such, Gurbacs believes that the launch of Bitcoin ETFs could eventually bring in similar amounts of money to the crypto market, which could be a major boon for projects such as Atom, 1inch, Algo, Bitrise, BAT, and ACH.
Bitcoin’s Market Cap and ETF Approval
Today, Bitcoin holds a market capitalization of $834 billion, representing 41% of the market capitalization of gold in 2004. According to Gurbacs, if the much-anticipated approval of a spot Bitcoin ETF in the United States is granted, its price could rise in a similar manner to gold, but at a much faster rate due to its limited supply and events such as halving.
Gurbacs also pointed out that a spot Bitcoin ETF would help to legitimize and de-stigmatize Bitcoin in the eyes of institutional investors and governments. Bloomberg ETF analysts Eric Balchunas and James Seyffart voiced their agreement with Gurbacs.
The Impact of Bitcoin ETF Approval
Seyffart acknowledged that while many are focusing on the immediate data points such as the initial inflows to the ETF, they may not be fully aware of the long-term effects of such a product.
At the moment, Bitcoin is trading at $42,525, showing an increase of 1.1% in the last 24 hours, according to TradingView data. Many commentators are debating the implications of the expected approval of Bitcoin ETFs.
Some argue that the approval will bring about a significant and enduring surge in the price of Bitcoin following the approval, while others suggest that the approval will be a “sell the news” event for ankr crypto today, brise crypto today, atom crypto today, 1 inch crypto today, breaking crypto today, algo crypto today, bitrise crypto today, bat crypto today, and ach crypto today.
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