Approval by the SEC of the first in the United States spot Bitcoin-ETF will not lead to a rapid rise in the price of the leading cryptocurrency. This view 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 an ultra-bullish factor, but I still doubt its ability to double Bitcoin’s price overnight,” he wrote.
Before making this claim, Pompliano explained that the coming growth of digital gold would be driven by large capital inflows into the sector and holders’ reluctance to part with the asset.
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 is already in circulation. Of those, more than 70% are 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 about supply and demand,” he explained.
However, commenters argued that such an inflow would lift prices only by 5–10%. Pompliano agreed with the “accurate nuance”.
In October, Morgan Creek Digital noted the uniqueness of the first cryptocurrency and called it “the most disciplined central bank in the world,” which “is not concerned with news or geopolitics.”
CEO Michael Sonnenshein of Grayscale said in a CNBC interview that he looks forward to the appearance of spot Bitcoin ETFs so that a large portion of the investment community can access the first cryptocurrency.
“We are really talking about the advisory market here in the United States, which is currently valued at around $30 trillion,” he said.
Sonnenshein added that optimism has returned to the crypto market and many investors are adding Bitcoin to their portfolios.
In late November, Grayscale discussed with the SEC the process of converting GBTC into a Bitcoin-ETF. In December, regulator Gary Gensler stated that the Commission is re-evaluating its approach after “court rulings”.
In JAN3, Samson Mow, the chief executive of JAN3, said that the exchange-traded fund based on digital gold will play an important role in marketing 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 the MEMO. Most people don’t understand how important ETFs are in terms of marketing and branding. They will bring a flow of capital, but equally important is the message that’s being sent,” the expert explained.
Earlier, Mow predicted that the price of digital gold would rise to $1 million after the spot ETF’s approval. He believes this will occur within a few “days or weeks” after the instrument’s approval.
Earlier, MicroStrategy founder Michael Saylor stated that Bitcoin would either crash to zero or soar to $1 million.