The Short-Term Disappointment of Bitcoin ETFs
Gabor Gurbacs of VanEck believes that, in the short term, Bitcoin ETFs may disappoint investors on the market. However, he emphasizes their long-term impact.
According to Gurbacs, investors may be initially disappointed in the performance of Bitcoin ETFs on the market. He suggests that the short-term impact of the approval of a Bitcoin ETF by the US SEC is overestimated, predicting only net inflows of around $100 million, mostly from institutional investors.
This moderate perspective contrasts with the high expectations of some market players, who anticipate an immediate and significant impact on the price of Bitcoin following the launch of these ETFs.
A Much More Significant Impact in the Long Term
Gurbacs is much more optimistic about the long-term impact of Bitcoin ETF approval, stating that it could eventually bring billions of dollars to the cryptocurrency sector.
He supports his claim by drawing an analogy with the gold ETF launched by State Street in 2004, which saw the price of gold quadruple in eight years, from $400 to $1,800. This significant increase also raised the market capitalization of gold from $2 trillion to $10 trillion.
Gurbacs suggests that Bitcoin could follow a similar trajectory, potentially even faster due to its limited supply and events that increase its scarcity, such as halving. Such a development could not only increase the value of Bitcoin but also legitimize the cryptocurrency in the eyes of institutional investors.