Crypto Leaders Anticipate Transformative Impact of Bitcoin ETFs on Market Dynamics
Summary:
Crypto industry leaders, including Grayscale CEO Michael Sonnenshein and Jan3 CEO Samson Mow, express optimism and discuss the potential impact of proposed spot Bitcoin ETFs. The ETFs are expected to increase Bitcoin exposure among investors, stimulate competition among asset managers, and possibly drive up Bitcoin prices. However, some, like Anthony Pompliano, caution against expecting overnight price doubles. Additionally, Bitcoin advocate Oliver Velez emphasizes the distinction between investing in Bitcoin ETFs and "real" Bitcoin.
As the plans for Bitcoin (BTC) exchange-traded funds (ETFs) are underway, leaders from the crypto industry are commenting on the potential impact of this new investment instrument on the overall market. Grayscale CEO Michael Sonnenshein while speaking to CNBC, conveyed that the market for BTC is once again filled with optimism and many investors are incorporating BTC into their portfolios. He eagerly anticipates the introduction of spot Bitcoin ETFs, which he believes will give a section of investors access to BTC, which they have lacked so far. He stated, "We're specifically discussing the advisory market in the United States which currently oversees wealth worth approximately $30 trillion."
Grayscale seeks to lead in acquiring approval for the spot Bitcoin ETF. To this end, representatives from Grayscale had a meeting with the trading and markets department of the US Securities and Exchange Commission (SEC) on November 22, to discuss the particulars of its principal Bitcoin trust, which they wish to turn into an ETF.
Well beyond funds being directed into Bitcoin, Jan3's CEO Samson Mow, who foresees that ETFs could push Bitcoin prices to $1 million, also thinks that ETFs could contribute to Bitcoin’s branding and promotional facets. Mow further opined, during a discussion on X (formerly Twitter), how fierce competition among wealth managers for greater assets under management (AUM) will likely initiate an advertising war that will benefit Bitcoin.
On December 19, Michael Saylor, co-founder of MicroStrategy, speculated that Bitcoin ETFs will bring about the most crucial progression in Wall Street in the last three decades. He proposed that the ETFs will be a driving factor stimulating interest in Bitcoin, making it more accessible to mainstream retail and institutional investors.
Despite predictions of Bitcoin prices skyrocketing, some believe that the costs “won't double" immediately even following the ETF approvals. Crypto investor Anthony Pompliano acknowledges that ETFs are an “exciting development” but doesn't anticipate substantial shifts to the already thriving market.
On another note, Bitcoin enthusiast Oliver Velez differentiates between investing in Bitcoin ETFs and "real Bitcoin". According to Velez, purchasing a spot BTC ETF equates to buying "paper Bitcoin" subjected to annual charges, whereas real BTC is a "once in a lifetime cost". He believes that true Bitcoin advocates will stick to dealing only with real BTC devoid of any custody expenses.
Published At
12/20/2023 2:32:18 PM
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