VanEck advisor Gabor Gurbacs suggests that while spot Bitcoin ETFs might disappoint initially, their long-term impact shouldn’t be underestimated.
The launch of spot Bitcoin exchange-traded funds (ETFs) might not cause an immediate shift in Bitcoin’s current standing, hovering around $45K. However, Gurbacs believes that over time, these ETFs could draw trillions of dollars into the crypto sector.
Gurbacs highlighted that the immediate effect of a Bitcoin ETF might be overstated, projecting initial inflows of about $100 million, largely sourced from institutional investors’ existing funds. He compared this to the launch of gold ETFs, where the price of gold surged significantly over eight years, quadrupling from $400 to $1,800, leading to a growth in gold market capitalization from $2 trillion to $10 trillion.
Considering Bitcoin’s current market cap at $834 billion, roughly 41% of gold’s market cap in 2004, Gurbacs anticipates a potential trajectory similar to gold but at a much faster pace due to Bitcoin’s capped supply and scarcity-driven events like halving.
Highlighting the significance of a spot Bitcoin ETF, Gurbacs emphasized its ability to legitimize and reduce stigma around Bitcoin among institutional investors and governments.
Bloomberg’s ETF analysts, Eric Balchunas and James Seyffart, echoed Gurbacs’ sentiment, stressing the long-term implications of the product over short-term reactions. They acknowledged Bitcoin’s current trading value at $42,525, noting a modest 1.1% increase in the last 24 hours.
While opinions vary regarding the expected approval’s immediate impact, some foresee a significant and lasting price surge, while others anticipate a “sell the news” event.
