{"id":68012,"date":"2024-01-01T06:28:06","date_gmt":"2024-01-01T10:28:06","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=68012"},"modified":"2024-01-01T06:28:09","modified_gmt":"2024-01-01T10:28:09","slug":"btc-etf-launch-may-disappoint-but-holds-trillion-dollar-potential","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/btc-etf-launch-may-disappoint-but-holds-trillion-dollar-potential\/","title":{"rendered":"BTC ETF Launch May Disappoint But Holds Trillion-Dollar Potential"},"content":{"rendered":"\n

Investors may find spot Bitcoin ETFs<\/a> underwhelming initially, but VanEck advisor Gabor Gurbacs stresses their underestimated long-term impact.<\/p>\n\n\n\n

\"BTC
BTC ETF Launch May Disappoint But Holds Trillion-Dollar Potential<\/figcaption><\/figure>\n\n\n\n

According to VanEck adviser Gabor Gurbacs, \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>the introduction of spot Bitcoin exchange-traded funds (ETFs) may not significantly affect Bitcoin. However, it has the potential to generate trillions of dollars for the cryptocurrency industry over time.\u00a0<\/p>\n\n\n\n

Gurbacs argued in a post to X (formerly Twitter) on January 1 that the “initial impact” of a Bitcoin ETF is being grossly exaggerated, estimating that it may receive net inflows of no more than\u00a0$100 million<\/strong>\u00a0at launch, consisting “mostly recycled” funds from large institutional investors.<\/p>\n\n\n\n

In my view, people tend to overestimate the initial impact of U.S. Bitcoin ETFs. I think maybe a few $100mm flows (mostly recycled) money.

Long term, people tend to underestimate the impact of spot Bitcoin ETFs. If history is any guide, gold is worth studying as a parallel. https:\/\/t.co\/6vvkA9aC09<\/use><\/svg><\/span><\/a><\/p>— Gabor Gurbacs (@gaborgurbacs) December 31, 2023<\/use><\/svg><\/span><\/a><\/blockquote> \n\n\n\n

In contrast, Gurbacs was considerably more optimistic regarding the long-term impact of ETFs on Bitcoin, citing the gold price appreciation that followed the introduction of gold ETFs.<\/p>\n\n\n\n

State Street, a global investment advisory firm, introduced the initial gold ETF on November 18, 2004. Gurbacs explained that the price of gold more than quadrupled from $400 to $1,800 in the eight years following the introduction.<\/p>\n\n\n\n

The substantial increase in value caused the gold market capitalization to surge from $2 trillion to $10 trillion during the same period. Presently valued at $834 billion, Bitcoin represents roughly 41% of gold's market capitalization in 2004.<\/p>\n\n\n\n

Gurbacs believes that Bitcoin's price trajectory could follow in the footsteps of gold following the widely anticipated approval of a spot Bitcoin ETF in the United States. However, he added that this would likely occur “much faster” due to Bitcoin's capped supply and scarcity-increasing events, such as the halving.<\/p>\n\n\n\n

Furthermore, he stated that the capacity of a spot Bitcoin ETF to destigmatize and legitimize Bitcoin in the eyes of nation-states and institutional investors is one of its most significant advantages. James Seyffart and Eric Balchunas, analysts at Bloomberg ETFs, concurred with Gurbacs.<\/p>\n\n\n\n

Mostly in agreement with Gabor on this. Consensus seems to be (anecdotally) that People are focused on a massive short term impact that I think could be a bit of a let down while at same time not fully appreciating the potential longer term impacts. https:\/\/t.co\/z69Wbffcu9<\/use><\/svg><\/span><\/a><\/p>— James Seyffart (@JSeyff) December 31, 2023<\/use><\/svg><\/span><\/a><\/blockquote> \n\n\n\n

Although many are fixated on short-term data points, such as the initial day's inflows into the ETF, Seyffart concurred that they must comprehend the product's long-term ramifications.<\/p>\n\n\n\n

According to TradingView data,<\/use><\/svg><\/span><\/a> Bitcoin is exchanging hands for $42,525, an increase of 1.1% over the past twenty-four hours. Numerous market commentators<\/p>\n\n\n\n

There are differing opinions on whether the anticipated approval will result in a substantial and sustained price increase in the immediate aftermath or whether it is a “sell the news” event. <\/p>\n","protected":false},"excerpt":{"rendered":"

Investors may find spot Bitcoin ETFs underwhelming initially, but VanEck advisor Gabor Gurbacs stresses their underestimated long-term impact. According to VanEck adviser Gabor Gurbacs, the introduction of spot Bitcoin exchange-traded funds (ETFs) may not significantly affect Bitcoin. However, it has the potential to generate trillions of dollars for the cryptocurrency industry over time.\u00a0 Gurbacs argued […]<\/p>\n","protected":false},"author":53,"featured_media":67413,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83],"tags":[16934,5860,5747],"class_list":["post-68012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin-etf-launch","tag-cryptocurrencies-2","tag-sec-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/12\/VB.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/68012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/53"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=68012"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/68012\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/67413"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=68012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=68012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=68012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}