Bitcoin ETF Expectations: Caution Advised by Bloomberg Analyst
Date: 2023-12-13 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
The potential introduction of Bitcoin Exchange-Traded Funds (ETFs) in the United States has generated significant excitement and speculation within the cryptocurrency community. Proponents believe that these ETFs could usher in an influx of capital amounting to a staggering $100 billion. However, Bloomberg analyst James Seyffart suggests that such high expectations should be approached with caution.
Seyffart emphasizes that it may take years to attract $100 billion through spot Bitcoin ETFs. To provide context, he draws a parallel with gold, noting that gold ETFs have been in existence in the U.S. since 2004 and currently hold assets worth approximately $95 billion. Therefore, the prospect of spot Bitcoin ETFs attracting such substantial investments would be considered a remarkable success, even if it takes several years to achieve.
It is worth noting that gold traditionally appeals to conservative investors due to its long-standing history as a store of value.
In early January 2024, the U.S. Securities and Exchange Commission (SEC) is expected to make a decision regarding ETF applications from 21Shares and Ark. One potential outcome is that the SEC approves all ETF applications simultaneously to eliminate any first-mover advantage in the emerging market.
