Anthony Pompliano: Approval of Bitcoin ETF Won't Double Its Price Overnight
Date: 2023-12-21 Author: Dima Zakharov Categories: IN WORLD
The Hype Surrounding the Bitcoin ETF
The cryptocurrency community has been eagerly awaiting the approval of a Bitcoin Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Many believe that such an approval could usher in a new era for Bitcoin, attracting significant investment and driving its price to new heights. However, Anthony Pompliano has a more tempered perspective.
Pompliano's Insights
Anthony Pompliano acknowledged the significance of the ETF but cautioned against expecting an immediate price explosion. He pointed out that the majority of Bitcoin is already in circulation, with a large portion held by long-term investors unwilling to sell. While tens of billions of dollars may flow into Bitcoin with the ETF's approval, Pompliano suggests that the market may only see a modest 5-10% price increase.
Other Voices in the Crypto Space
CEO of Grayscale, Michael Sonnenshein, eagerly anticipates the launch of spot Bitcoin ETFs, as it would provide broader access to the cryptocurrency within the investment community. He highlighted the potential of Bitcoin in the U.S. consulting market, which is estimated at around $30 trillion.
Experts like Samson Mow emphasize the marketing and branding impact of Bitcoin ETFs, besides the capital influx they bring. Mow previously predicted Bitcoin's price could reach $1 million within days or weeks of a spot ETF's approval.
Conclusion
The approval of a spot Bitcoin ETF in the United States remains a significant milestone in the cryptocurrency world. While expectations are high, opinions vary on the immediate impact it will have on Bitcoin's price. Anthony Pompliano's cautionary perspective serves as a reminder that market dynamics and investor sentiment play a crucial role in determining cryptocurrency prices.
