Crypto investors are curious about how Bitcoin (BTC) will perform in the coming months, and renowned venture capitalist Anthony Pompliano has revealed that he expects the largest cryptocurrency to face two types of events that resemble the bull market of 2020.
In an interview with CNBC, Pompliano stated that regulators will eventually give the green light to a spot-based Bitcoin exchange-traded fund (ETF). The venture capitalist indicated that if the approval of a spot Bitcoin ETF happens during the next block reward halving, it could lead the largest cryptocurrency to enter a fully developed bull market. He stated:
We have our futures-based ETFs. I believe we will also get approval for a spot-based Bitcoin ETF. The real question here is when this will happen. One thing that people aren’t talking about is that this ETF could create a demand shock. When this happens, assets will flow into the sector. However, as the block reward halving approaches, this block reward halving will coincide with a supply shock, and if this happens, I think we could see a significant rise in price, similar to what we saw in 2020.
For those who are unaware, the Bitcoin block reward halving, also known as Bitcoin halving, refers to the halving of the reward amount miners receive per block they mine by 50%. The next block reward halving is estimated to occur in April 2024.
Furthermore, Pompliano emphasized that as soon as a spot Bitcoin ETF is launched, he expects strong and large investors to flock to the largest cryptocurrency. He said, “If you are an individual investor and you want to be exposed to Bitcoin in the last two, three, five years, you have probably found a way to do it. So, I don’t think there will be much entry from individual investors, but I don’t think state sovereign wealth funds or very large institutions are buying spot Bitcoin on Coinbase. I think the real influx will come from institutions with a spot Bitcoin ETF.”
According to CoinMarketCap data, as of the time this article was written, Bitcoin is trying to hold above the $26,000 level with a 0.49% increase in the last 24 hours. BTC is currently trading at $26,010, with a 0.04% decrease in the last 7 days.