Bitcoin ETF Launch: A Quiet Start with the Potential to Attract Trillions Over Time!
The imminent launch of spot Bitcoin exchange-traded funds (ETFs) may not cause immediate fireworks in the Bitcoin (BTC) market, but VanEck adviser Gabor Gurbacs sees a future where these ETFs could usher in trillions of dollars into the cryptocurrency sector.
Initial Impact Misjudged: Gurbacs Suggests a Modest Start for Bitcoin ETFs!
In a candid post on X (formerly Twitter) dated January 1, Gabor Gurbacs poured cold water on the anticipation surrounding the "initial impact" of Bitcoin ETFs. He estimates a humble net inflow of around $100 million, largely sourced from "mostly recycled" money from significant institutional investors during the launch.
Historical Parallels: Drawing Insights from the Gold ETF Launch!
Gurbacs draws parallels to history, specifically pointing to the launch of the first gold ETF by State Street on November 18, 2004. Over the following eight years, the price of gold skyrocketed from $400 to $1,800, witnessing a more than fourfold increase. This surge catapulted the total market capitalization of gold from $2 trillion to an impressive $10 trillion within the same period.
A Marathon, Not a Sprint: Bitcoin ETFs Positioned for Long-Term Growth!
Despite the seemingly subdued initial impact, Gurbacs paints a picture of long-term growth for Bitcoin ETFs. Comparing the trajectory to the gold market, he hints at the potential for these ETFs to attract trillions of dollars over time, positioning the cryptocurrency sector for substantial growth in the years to come.
Source
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