As the crypto industry anticipates the launch of spot Bitcoin exchange-traded funds (ETFs), key figures in the sector are voicing their thoughts on how these ETFs might impact the market.
In an interview with CNBC, Grayscale CEO Michael Sonnenshein shared his optimism about the Bitcoin market. He noted that an increasing number of investors are incorporating Bitcoin into their portfolios. Sonnenshein is particularly excited about the potential of spot Bitcoin ETFs to broaden Bitcoin investment opportunities to those who haven’t yet had the chance to invest in BTC. He highlighted the significance of this development for the U.S. advised market, which currently holds about $30 trillion in advised wealth.
Grayscale, a leading contender for obtaining spot Bitcoin ETF approval, engaged in discussions with the SEC’s trading and markets division on November 22. The focus of the meeting was on converting their flagship Bitcoin trust into an ETF.
Jan3 CEO Samson Mow, who has speculated that ETFs could drive Bitcoin prices to $1 million, sees these funds as beneficial for Bitcoin’s branding and marketing. He predicts that the competition among asset managers for greater assets under management (AUM) will lead to an advertising war that will ultimately benefit Bitcoin.
On December 19, MicroStrategy co-founder Michael Saylor expressed his view that Bitcoin ETFs could be the most significant development on Wall Street in three decades. He believes these ETFs will catalyze demand for Bitcoin, opening doors for mainstream retail and institutional investors to gain Bitcoin exposure. While some expect a dramatic increase in Bitcoin’s price following ETF approvals, others, like crypto investor Anthony Pompliano, view the ETF as a highly positive development but don’t anticipate it to drastically move the already large market. Bitcoin enthusiast Oliver Velez, on the other hand, draws a distinction between purchasing spot BTC ETFs and actual Bitcoin. He argues that buying a spot BTC ETF is akin to acquiring “paper Bitcoin” with annual costs, whereas buying real Bitcoin involves a one-time cost. Velez asserts that true Bitcoin supporters will stick to dealing with actual BTC, free of custody fees.
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