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- CEO and Chief Investment Officer of Morgan Creek Capital Management, Mark Yusko predicts that a spot Bitcoin ETF approval could drive $300 billion to the crypto market.
- Yusko also stated that the first institution to get a spot Bitcoin ETF approval could also get the lion’s share of assets.
Several experts have made some bold Bitcoin predictions following the recent court ruling in the Grayscale Investments and the US Securities and Exchange Commission case. According to a three-judge panel of the District of Columbia Court of Appeals, the Commission failed to properly explain its reasons for rejecting the spot Bitcoin ETF application by the asset manager.
The Commission failed to adequately explain why it approved the listing of two bitcoin futures ETPs but not Grayscale’s proposed bitcoin ETP. In the absence of a coherent explanation, this is unlike the regulatory treatment of unlawful products.
The ruling could affect the outcome of at least one of the multiple spot Bitcoin ETF applications submitted by institutions including BlackRock and Fidelity. Following this potential approval, crypto experts including the CEO and Chief Investment Officer of Morgan Creek Capital Management, Mark Yusko have predicted the impact on the Bitcoin price.
In a video interview on the Paul Barron Network, Yusko predicted that a Bitcoin ETF approval could drive $300 billion into the crypto market. According to him, the majority of potential institutional investors are waiting for regulatory clarity before stepping into the market. With this, a spot Bitcoin ETF approval could prepare the grounds for them to have a secured and regulated exposure to the market.
Institutional investors have been exercising caution when it comes to entering the crypto realm due to uncertainties surrounding regulations and concerns pertaining to custody. A spot ETF would furnish them with a regulated and secure means to gain exposure to Bitcoin.
Bitcoin Price Could Stage a Bull Run
Yusko further added that this influx could have a considerable effect on the BTC price. For now, analysts expect the asset to hit $40k after this influx.
I’ll take it 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 free float of $100 billion would significantly drive up prices—a substantial surge.
This is twice the value of the gold ETF predicted by the senior Bloomberg ETF analyst Eric Balchunas. Research discloses that excluding Grayscale’s decision to convert GBTC to spot Bitcoin ETF, ten active spot products are underway. These include BlackRock, Fidelity, VanEck, Ark Invest, etc.
According to Yusko, the first to get approval could also become the largest within the ecosystem. For now, BlackRock remains the favorite due to its track record of having only one ETF application rejected by the SEC and 575 ETFs approved.
I’ve been voicing my belief for over a year that BlackRock will be the first. I might even go further and assert that they will be the sole entity to receive approval.
Per his observation, a spot Bitcoin ETF would certainly meet the due diligence requirements of institutional investors. For now, the reputation of Bitcoin as a store of value and a hedge against inflation has appealed to a portion of institutional investors to allocate part of their portfolio to the digital asset.
As of press time, BTC was trading at $26,139.32 after falling by 2 percent in the last seven days.
