Can Bitcoin’s spot ETF approval trigger a $300 billion crypto influx?
- Yusko believed that a spot Bitcoin ETF “will receive approval at some point around year-end.”
- Presently, a wave of ten active spot Bitcoin ETF applications are underway.
Mark Yusko, the CEO and Chief Investment Officer of Morgan Creek Capital Management, recently shared an intriguing prediction about the future of Bitcoin [BTC] in a video interview on the Paul Barron Network.
Notably, Yusko anticipated that the approval of a Bitcoin spot exchange-traded fund [ETF] by the U.S. Securities and Exchange Commission [SEC] could usher in a staggering influx of $300 billion into the cryptocurrency market.
Yusko commenced by stating the pivotal significance of SEC approval for a Bitcoin spot ETF within the United States. He emphasized that such approval would serve as a crucial bridge for institutional investors.
This would grant them a secure and regulated avenue to confidently venture into the Bitcoin market.
“Institutional investors have been exercising caution when it comes to entering the crypto realm due to uncertainties surrounding regulations and concerns pertaining to custody. A spot ETF would furnish them with a regulated and secure means to gain exposure to Bitcoin.”
Bloomberg Senior ETF analyst Eric Balchunas estimated that approval would result in an inflow of roughly $150 billion. However, Yusko articulated a more optimistic outlook.
“I’ll take it a step further and suggest that 1% seems even more plausible. That would amount to $300 billion. Injecting $300 billion into a market with a free float of $100 billion would significantly drive up prices—a substantial surge.”
CEO foresees institutional investment surge
Presently, a wave of ten active spot Bitcoin ETF applications is underway. This is excluding Grayscale’s proposal to convert its flagship fund, GBTC, into a spot Bitcoin ETF. Among these applicants is BlackRock, the world’s largest asset manager.
Yusko stressed the pivotal role of being the first to secure ETF approval. He stated that the initial entrant would likely amass the lion’s share of assets. He anticipates that BlackRock, with its considerable influence, could potentially be the trailblazer.
Yusko confidently declared,
“I’ve been voicing my belief for over a year that BlackRock will be the first. I might even go further and assert that they will be the sole entity to receive approval.”
Yusko’s optimism rests on the premise that a regulated spot Bitcoin ETF would effectively meet the stringent due diligence requirements of institutional investors. This would empower them to allocate a portion of their portfolios to this digital asset.
He pointed out that Bitcoin’s evolution as an asset class and its burgeoning reputation as a store of value have already attracted significant attention from institutional quarters. In terms of the approval timeline, Yusko believes that a spot Bitcoin ETF,
“Will receive approval at some point around year-end.”