The launch of spot Bitcoin exchange-traded funds (ETFs) may not live up to immediate expectations, but they have the potential to attract trillions of dollars over time, according to Gabor Gurbacs, an adviser at VanEck. While investors may be let down by the initial performance of Bitcoin ETFs, Gurbacs believes that their long-term impact should not be underestimated.
Spot Bitcoin ETFs have been subject to regulatory hurdles and delays in the United States. Despite this, the launch of a Bitcoin futures ETF has been approved by the US Securities and Exchange Commission (SEC), promising to bring institutional-grade exposure to the cryptocurrency asset class.
The potential appeal of Bitcoin ETFs lies in their ability to provide a regulated and accessible investment vehicle for both retail and institutional investors. This could lead to a significant influx of capital into the cryptocurrency market, potentially reaching trillions of dollars.
The article mentions the potential drawbacks of Bitcoin ETFs, including concerns surrounding market manipulation and the possibility of a massive sell-off by investors. However, Gurbacs argues that these concerns are not unique to Bitcoin and that similar risks exist in other markets. He believes that with proper regulation and oversight, the benefits of Bitcoin ETFs will outweigh the risks.