In a recent video interview On Paul Barron’s Network, Mark Yusko, CEO and chief investment officer at Morgan Creek Capital Management, made a compelling prediction about Bitcoin’s future. Yusko, who has decades of experience in the financial industry, suggested that the SEC’s approval of a Bitcoin spot exchange-traded fund (ETF) could pave the way for a $300 billion influx into the market.
The interview, which examined the current state of the Bitcoin landscape and its potential for institutional investment, saw Yusko highlight the impact regulatory developments could have on the Bitcoin market.
Yusko began by emphasizing the importance of the approval of a Bitcoin ETF in the US, highlighting that it will provide a bridge for institutional investors to enter the Bitcoin market with confidence. He explained: “Institutional investors have been cautious about entering the cryptocurrency space due to regulatory uncertainties and concerns about custody. An ETF would provide them with a regulated and safe way to gain exposure to Bitcoin.”
Bloomberg is a senior ETF analyst Eric Balchunas He expects about $150 billion to flow into the market when approved, but Yusko believes there is potential for more than that. “I would go further and say 1% seems more likely. That would be $300 billion. $300 billion on $100 billion of free float – the price is going up a lot. A lot, a lot,” he said.
There is currently a flurry of 10 active Bitcoin ETF filings, not including Grayscale’s request to convert its GBTC flagship fund into a spot Bitcoin ETF. Among those applicants is BlackRock, the world’s largest asset manager, which will “fight like cats and dogs to win market share” against other asset managers once they are approved, According to To Galaxy Digital CEO and Bitcoin ETF applicant Mike Novogratz.
Yusko stressed the importance of first mover advantage in gaining approval for an ETF, saying, “Whoever is first, will get the vast majority of the assets.” But he sees BlackRock’s entry into the market as a complete game changer. While many people have tried and failed to get an ETF approved by the SEC, Yusko believes BlackRock will be the first — and perhaps the only one — to apply for an accredited fund.
“I think and I’ve said many times that BlackRock will be the first company. I’ve actually been saying that for over a year. And I might actually be stronger and say it will be the only company approved.” He said.
Yusko’s optimism is based on the belief that regulated spot ETFs will meet the due diligence requirements of institutional investors, enabling them to allocate a portion of their portfolios to digital assets. He stated that Bitcoin’s maturation as an asset class and its growing recognition as a store of value has already sparked institutional interest.
Yusko believes the Bitcoin ETF “will be approved sometime around the end of the year,” whether that is before the end of the year or early 2024.
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