- Hayes attributed Bitcoin’s rise to $70,000 to ETFs.
- Investors are starting to show a greater preference for BTC.
In the wake of fluctuating Bitcoin [BTC] Prices, Arthur Hayes, the co-founder of BitMEX, has made an optimistic prediction for the future of the cryptocurrency.
In the latter episode from the podcast ‘The Wolf of All Streets’, Hayes saw that Bitcoin would reach unprecedented heights. He noted:
“A million? I don’t think people have a big enough imagination…why did it go as fast as 70,000? Because a number of people can now check a box and buy a Bitcoin ETF.”
Recent statistics support his argument. The ten leading Bitcoin ETFs witnessed a remarkable 15% increase in net inflows, reaching $2.57 billion last week.
This was a jump from the $2.24 billion recorded the week before.
The director interpreted this trend as a clear indicator of growing interest from the global investment community.
Disillusioned by the declining returns of traditional bonds, investors are now watching Bitcoin ETFs as a lucrative, low-risk diversification option.
To Wall Street and Beyond: The ETF Revolution
The shift towards Bitcoin ETFs has not gone unnoticed by financial experts.
Grant Engelbart, Vice president and investment strategist at Carson Group recently highlighted the trend interview with Bloomberg ETF IQ. He revealed,
“We have seen a handful of advisors allocate an average of 3.5% to two client households.”
Engelbart shed light on the strategic financing of these investments. He noticed a trend of investors reallocating assets from other segments of their portfolios.
This mainly concerns growth funds and aggressive share positions.
These allocations to Bitcoin ETFs are generally conservative. They form a small part of the total portfolio, often no more than five percent.
Altcoin ETFs can open more demand
Based on the success of Bitcoin ETFs, Hayes speculates that fund managers are keeping a close eye on the market, ready to take advantage of the vast universe of more than 3,000 cryptocurrencies.
He suggested that the introduction of altcoin ETFs could significantly increase demand. This will be driven by the sheer hunger for trading various digital assets.
Moreover, Hayes hinted at a crucial moment ahead of the possible launch of an Ethereum [ETH] ETF, which states:
“Maybe there is a little more resistance…. the airwaves, if it happens, and the floodgates are open.”
The executive pointed out that integrating altcoins into ETFs is not just seen as an extension of the crypto story, but as a strategic move to attract more assets under management (AUM).
So it improves stock valuations and generates higher compensation income for those at the helm.
