Vaneck Director: People Tend to Underestimate Long-Term Impact of Spot Bitcoin ETFs

Vaneck’s director of digital belongings technique has defined why individuals are likely to underestimate the long-term impression of spot bitcoin exchange-traded funds (ETFs). He believes that upon the approval of a U.S. spot bitcoin ETF by the Securities and Exchange Commission (SEC), “bitcoin’s price trajectory could follow gold’s blueprint from 2004 and the years after, just much faster.”

Market Impact of Spot Bitcoin ETFs

Vaneck’s director of digital belongings technique, Gabor Gurbacs, shared his predictions relating to the long-term impression of U.S. spot bitcoin exchange-traded funds (ETFs) on social media platform X Sunday. Vaneck is among the many asset administration companies which have utilized to launch a spot bitcoin ETF with the U.S. Securities and Exchange Commission (SEC).

While noting that in his view, “people tend to overestimate the initial impact of U.S. bitcoin ETFs,” which he expects to be only some hundred million {dollars} in primarily recycled funds, the Vaneck director mentioned:

Long time period, individuals are likely to underestimate the impression of spot bitcoin ETFs.

“People tend to hype the current thing but remain myopic about the big picture. Bitcoin is forcing its own capital markets systems and products well beyond the ETF and that’s not priced in. The question is not what Blackrock adopts, but what Bitcoin company is the next Blackrock,” he opined in a follow-up submit.

“If history is any guide, gold is worth studying as a parallel,” Gurbacs continued. He then referenced his post made on Dec. 6 which particulars why the approval of a U.S. spot bitcoin ETF might create trillions of {dollars} in worth for bitcoin.

He defined that the SPDR Gold Shares ETF (GLD) was launched on Nov. 18, 2004, noting: “In the subsequent 8 years gold’s price quadrupled+ from $400 to $1,800 adding ~$8 trillion in market cap going from ~$2 trillion to ~$10 trillion.”

The Vaneck director emphasised:

Bitcoin’s market cap is ~$750 billion at this time, lower than 1/third of what gold was in 2004. In my view, upon the approval of a U.S. spot bitcoin ETF, bitcoin’s value trajectory may observe gold’s blueprint from 2004 and the years after, simply a lot quicker.

“I also believe that only a few $10 billion will come from bitcoin ETP [exchange-traded products] adoption and it won’t come all at once,” he added. Nonetheless, Gurbacs identified that “the boost will be significant,” given “a relatively low bitcoin float (strong hands/long-term holders)” and “systematic scarcity via halving schedules.”

In addition, he confused that “the ETF itself will legitimize and destigmatize bitcoin’s place in portfolios leading to further adoption outside the ETF.” The Vaneck director additional predicts that “nation states and sovereign wealth funds will hold their bitcoin directly and secure optionality for mining and their own bitcoin-based capital markets.” He famous that “central bank gold adoption outside of ETPs drove a good chunk of gold’s price increase, but the ETPs were quintessential to get comfortable with gold.)”

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