The chief technique officer of market intelligence agency CoinShares believes that the potential approval of spot market Bitcoin (BTC) exchange-traded funds (ETFs) within the coming days is not going to be a bearish occasion for the main crypto asset.
In a brand new CNBC Tv interview, Meltem Demirors says that funding flows into crypto change merchandise (ETPs) point out relentless demand for Bitcoin.
Based on Demirors, the approval of spot-based Bitcoin ETFs will possible result in billions of {dollars} in capital flowing into BTC.
“I don’t assume this can be a sell-the-news occasion and right here is why. Let’s simply discuss in regards to the flows… If we have a look at what occurred final 12 months, within the final week of 2023, $243 million of flows into crypto ETPs primarily Bitcoin, $2.2 billion for the 12 months final 12 months. It’s not stopping.
There’s demand for Bitcoin. When these new merchandise launch, we’ve heard there’s one issuer that’s seeding their fund with $200 million. Rumors now that BlackRock is coming in with $2 billion. All of that results in shopping for of Bitcoin, no less than to demand for Bitcoin. So I don’t assume it’s a sell-the-news occasion as a result of Bitcoin is proscribed in provide. That’s one of many actually fascinating, distinctive properties of it.”
Trying on the broader crypto markets, Demirors thinks that the circumstances usually are not but ripe for asset managers to begin issuing ETFs based mostly on riskier digital property.
“I feel in relation to different crypto property, it’s going to take a while simply because there isn’t that lengthy observe file… Bitcoin has been round for a very long time, battle-tested. The markets are very deep, very liquid. We don’t actually see that within the longer tail of crypto property.
However what we do know is there’s large investor demand. As we speak, there may be over $50 billion in world AUM (property beneath administration) throughout crypto ETPs. Now, $38 billion of that, or over 75% is in Bitcoin. However the subsequent $10 billion [is in] Ethereum. Then we’ve bought Solana, very talked-about this latest 12 months, and a protracted tail of others.
However I do assume it’s simply going to take a while for the market to get snug.”
At time of writing, Bitcoin is buying and selling for $44,100.
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