Spot Bitcoin ETF Could Attract $3B on First Day and Up To $55B Over Five Years: Analysts
Investors have been eagerly anticipating regulatory approval for a spot Bitcoin ETF, which is expected to trigger a fresh wave of institutional demand in the leading cryptocurrency.
While estimating the potential cash inflow for such a fund remains a subject of debate among market players, projections range from $3 billion on its first day to a staggering $55 billion over a span of five years, according to a Tuesday report by Reuters.
Drawing a parallel to the gold market, Dave Mazza, Chief Strategy Officer at ETF provider Roundhill Investments, told the media outlet that the approval of spot ETFs has the potential to transform the landscape of the bitcoin market.
He anticipates a surge in purchasing activity with the introduction of the first spot bitcoin ETFs, similar to the impact of the first-ever gold ETF in 2006 or the bitcoin futures ETF in 2021.
Several prominent investment giants, including BlackRock and Fidelity, as well as crypto-focused firms like Grayscale, have submitted applications for spot bitcoin ETFs.
The U.S. Securities and Exchange Commission (SEC) is currently reviewing eight to ten filings for new spot bitcoin products, although details regarding the timing of decisions are still unclear.
Despite the optimism surrounding ETFs, there are traditional investors who remain skeptical about cryptocurrencies and express no interest in these new investment vehicles.
“Not a penny of my clients’ money will find its way into these misbegotten so-called investments,” said George Gagliardi, an investment advisor with Coromandel Wealth Management in Lexington, Massachusetts.
The optimism around the launch of a spot Bitcoin ETF has fueled the recent rally in crypto markets, which saw the flagship cryptocurrency reach
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