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- Yusko believed that a spot Bitcoin ETF “will gain approval sometime around the end of the year.”
- Currently, there is a wave of ten active spot Bitcoin ETF applications underway.
Mark Yusko, the CEO and Chief Investment Officer of Morgan Creek Capital Management, recently shared an intriguing prediction about the future of Bitcoin [BTC] in a video interview on the Paul Barron Network.
Notably, Yusko expected the approval of a Bitcoin exchange fund on the exchange [ETF] by the US Securities and Exchange Commission [SEC] could herald a staggering $300 billion influx into the cryptocurrency market.
Yusko began by outlining the crucial significance of SEC approval for a Bitcoin spot ETF in the United States. He emphasized that such approval would provide a crucial bridge for institutional investors.
This would provide them with a safe and regulated way to enter the Bitcoin market with confidence.
He explained,
“Institutional investors have been cautious when it comes to entering the crypto realm due to regulatory uncertainties and custody concerns. A spot ETF would provide them with a regulated and secure means of gaining exposure to Bitcoin.”
Bloomberg Senior ETF analyst Eric Balchunas estimated that approval would result in inflows of about $150 billion. However, Yusko formulated a more optimistic view.
He claimed,
“I’ll go a step further and suggest that 1% seems even more plausible. That would amount to $300 billion. Injecting $300 billion into a market with a $100 billion free float would drive prices up significantly – a substantial increase.”
The CEO foresees an increase in institutional investments
Currently, there is a wave of ten active spot Bitcoin ETF applications underway. This does not include Grayscale’s proposal to convert its flagship fund, GBTC, into a spot Bitcoin ETF. Among these applicants is BlackRock, the world’s largest asset manager.
Yusko emphasized the crucial role of being the first to obtain ETF approval. He stated that the first entrant would likely amass the lion’s share of the assets. He expects that BlackRock, with its significant influence, could potentially be the pioneer.
Yusko stated confidently:
“I have been expressing my belief for over a year that BlackRock will be the first. I could even go further and say that they will be the only entity to receive approval.”
Yusko’s optimism rests on the premise that a regulated spot Bitcoin ETF would effectively meet the strict due diligence requirements of institutional investors. This would allow them to allocate a portion of their portfolios to these digital assets.
He pointed out that Bitcoin’s evolution as an asset class and its growing reputation as a store of value have already attracted significant attention from institutional circles. As for the approval timeline, Yusko believes that a spot Bitcoin ETF,
“Should get approval sometime around the end of the year.”
