VanEck’s Insider On Spot Bitcoin ETFs’ Impact

Recently, Gabor Gurbacs, an advisor at Tether and the renowned investment management firm VanEck, has shared his perspective, offering a long-term bullish stance on the potential impact of a spot Bitcoin exchange-traded funds (ETFs) launch in the US.

This view particularly counters the common tendency of people’s short-term outlook of the impact of spot BTC ETF and not the long-term. Gurbacs noted as Gurbacs stated:

People tend to hype the current thing but remain myopic about the big picture.

Gurbacs emphasized that while the introduction of spot Bitcoin ETFs is often surrounded by short-term speculation, their real value lies in their long-term influence.

The advisor of VanEck suggested that initially, the launch of a spot BTC ETFs might result in a net inflow of  $100 million, predominantly comprising reinvested funds from institutional players.

In my view, people tend to overestimate the initial impact of U.S. Bitcoin ETFs. I think maybe a few $100mm flows (mostly recycled) money.

Long term, people tend to underestimate the impact of spot Bitcoin ETFs. If history is any guide, gold is worth studying as a parallel. https://t.co/6vvkA9aC09

— Gabor Gurbacs (@gaborgurbacs) December 31, 2023

Gurbacs’ insights further pointed at a post uploaded earlier last month delving into the deeper implications of a US spot BTC ETF approval. Drawing parallels with gold’s historical financial market trends, Gurbacs suggests that spot BTC ETF approval could potentially unlock trillions of dollars in value over time.

Gold’s Blueprint: A Parallel Path For Bitcoin?

Gurbacs’ analogy between the gold market and Bitcoin provides a compelling narrative. The VanEck advisor references the dramatic increase in gold’s value following the launch of the first gold ETF by State Street in November 2004.

This event marked a significant turning point, with gold prices soaring from $400 to $1800 over eight years and its market capitalization increasing fivefold from $2 trillion to $10 trillion. Such historical evidence underpins Gurbacs’ belief that Bitcoin could emulate gold’s journey post-spot ETF launch.

Extending his analysis, Gurbacs posits that approving a US spot BTC ETF would follow “gold’s blueprint from 2004,” potentially triggering a similar exponential rise in Bitcoin’s value.

Gurbacs envisions Bitcoin carving out its niche in the global financial ecosystem, transcending the short-term hype to establish long-lasting value.

Meanwhile, The Next Big Wave In Finance

In addition to his bullish view on Bitcoin ETFs, Gurbacs has recently expressed optimism about the future of stablecoins. Gurbacs envisions these digital assets becoming the next significant force in the financial market, potentially growing into multi-trillion-dollar markets.

Investment wrappers evolved from stocks to hedge funds to mutual funds towards ETFs, each creating a multi-trillion $ market. What’s next? In my view, it’s stablecoins. Here are a few attributes on why stablecoins have the potential to create the next multi-trillion $ markets. pic.twitter.com/QjM4iMmD4o

— Gabor Gurbacs (@gaborgurbacs) December 27, 2023

According to Gurbacs, stablecoins possess unique features that set them apart from traditional financial instruments like stocks, hedge funds, mutual funds, and ETFs. These attributes include low fees, easy accessibility, and practicality in commerce, making stablecoins not just a digital asset, but a key player in the future of global finance.

Featured image from Unsplash, Chart from TradingView