FameEX Hot Topics | Vaneck Executive Points Out Underestimation of Long-Term Effects of Spot Bitcoin ETFs by Many

Gabor Gurbacs, the Director of Digital Assets Strategy at Vaneck, has offered a detailed perspective on the potential long-term influence of U.S. spot bitcoin exchange-traded funds (ETFs) on social media platform X. Vaneck, an asset management firm, is actively seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch a spot bitcoin ETF, positioning itself at the forefront of this financial innovation.

Gurbacs pointed out that while the immediate impact of U.S. bitcoin ETFs might be overhyped, anticipated to attract a few hundred million dollars primarily in recycled funds, their long-term implications are often overlooked. He argues that Bitcoin is creating its own financial ecosystem, extending far beyond the scope of ETFs, yet this broader influence is not fully accounted for in its current market valuation.

Drawing a parallel with gold, Gurbacs referred to his earlier post which suggested that the sanction of a U.S. spot bitcoin ETF could inject trillions of dollars into Bitcoin's market value, akin to the trajectory gold took after the 2004 launch of the SPDR Gold Shares ETF (GLD). Post-GLD introduction, gold's price saw a fourfold increase over eight years, boosting its market cap from around $2 trillion to approximately $10 trillion. Gurbacs posits that Bitcoin could mirror this path, albeit at an accelerated pace, given its current market cap of about $750 billion, significantly less than a third of gold’s value in 2004.

Gurbacs also believes that the embrace of bitcoin exchange-traded products (ETPs) could add tens of billions of dollars to Bitcoin's value, despite not being an immediate influx. This growth, he predicts, will be significant, propelled by Bitcoin's finite supply, the commitment of long-term holders, and its inherent scarcity accentuated by its halving events.

Moreover, Gurbacs anticipates that the endorsement and normalization of Bitcoin through an ETF will extend its adoption beyond the confines of ETFs. He envisions a future where nation-states and sovereign wealth funds directly hold and invest in Bitcoin, engaging in its mining and developing Bitcoin-centric financial markets. He noted the parallel rise in gold’s price, driven largely by central banks' adoption outside of ETPs, underscoring the vital role ETPs played in gold’s acceptance as a legitimate asset class.

In conclusion, Gurbacs's insights suggest that the approval of a U.S. spot bitcoin ETF could be a pivotal moment for Bitcoin, potentially ushering it into mainstream financial portfolios and catalyzing its widespread adoption among diverse financial entities, including central banks and nation-states. Such a development could have extensive ramifications for the cryptocurrency market, potentially elevating Bitcoin to the status of a major global financial asset class, reshaping the economic landscape in profound ways.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.