SEC approval of the first US spot Bitcoin ETF will not lead to rapid growth in the prices of the first cryptocurrency. This opinion was expressed by Morgan Creek Digital co-founder Anthony Pompliano.
I believe the ETF is an ultra bullish development but still won't double the price overnight, etc.
You have correctly highlighted the nuance of an already large market that is unlikely to be moved exponentially with $50 billion of inflow.
— Pomp 🌪 (@APompliano) December 19, 2023
“I believe the ETF is ultra-bullish, but I still doubt its ability to double the [Bitcoin] price overnight,” he wrote.
Before this statement, Pompliano attributed the upcoming growth of digital gold to the large influx of funds into the industry and the reluctance of asset holders to part with it.
More than 90% of all bitcoin is already in circulation.
70%+ is held by people who refuse to sell.
Tens of billions of dollars of demand are on the way with the spot ETF.
You learned what happens next when your Economics 101 professor taught you supply and demand.
Wild.
— Pomp 🌪 (@APompliano) December 19, 2023
“More than 90% of all BTC are already in circulation. Of these, more than 70% are held by people who refuse to sell. Tens of Billions of Dollars in Demand Are on the Way with a Spot ETF. You learned what would happen next when your economics teacher introduced you to supply and demand,” he explained.
However, in the comments they objected to him that the entry of such an amount into the market would cause growth of only 5-10%. Pompliano agreed with a “good point.”
In October, the co-founder of Morgan Creek Digital noted the uniqueness of the first cryptocurrency and called it “the most disciplined central bank in the world” that “doesn’t care about the news or geopolitics.”
Grayscale CEO Michael Sonnenshein said in a CNBC commentary that he is looking forward to the emergence of spot Bitcoin ETFs so that the majority of the investment community has access to the first cryptocurrency.
“We're really talking about a consulting market here in the U.S. that's worth about $30 trillion today,” he said.
Sonnenschein added that optimism has returned to the cryptocurrency market and many investors are adding Bitcoin to their portfolios.
At the end of November, Grayscale management discussed with the SEC the process of converting GBTC into a Bitcoin ETF. In December, the regulator's chief executive, Gary Gensler, said the Commission was reviewing its approach following “court decisions.”
According to JAN3 CEO Samson Moe, an exchange-traded fund based on digital gold will play an important role in the marketing of the asset.
The #Bitcoin ETF is the MEMO.
Most people don’t understand how significant the ETFs are in terms of marketing and branding. They will bring a flood of capital, but equally important is the message or memo that's being sent out. 🧵👇pic.twitter.com/epiL8xoXhr
— Samson Mow (@Excellion) December 19, 2023
“Bitcoin ETF is a MEMO. Most people don't realize how important ETFs are from a marketing and branding perspective. It will bring a flow of capital, but the message it sends is equally important,” the expert explained.
Previously, Mou predicted that digital gold would rise to $1 million after the approval of a spot ETF. He believes this will happen within “days or weeks” of the instrument being approved.
Recall that MicroStrategy founder Michael Saylor said that Bitcoin will either collapse to zero or soar to $1 million.
How will the adoption of a spot ETF affect the price of Bitcoin?