Five to six years ago, most investors doubted that the SEC would approve spot Bitcoin ETFs. However, by January 2024, Bitcoin has already transformed into an ETF trading on US exchanges with over $12 billion in net inflows. However, demand does not always increase, and there are dull days similar to today.
The Future of Cryptocurrencies
Long-term goals are common among investors who have made significant gains in cryptocurrencies. Short-term fluctuations hardly shake them, and they reap more than their investment in the right projects after a few years. Those who can correctly read the four-year cycles are aware that the periods of decline and rise create their own stories.
Mark Yusko, CEO of Morgan Creek Capital, says the impact of spot Bitcoin ETFs will be more clearly seen in the future. According to him, despite a strong net inflow of $12 billion, IBIT and others have not yet reached their full potential.
“I think it will be $300 billion. This is actually more money converted into Bitcoin over 15 years, and we will see this coming from boomer investors.”
Yusko expects the capital flow to come from baby boomers (born between 1946-1964) through retirement accounts managed by advisors. According to the Investment Advisors Association, financial advisors were managing assets worth $114 trillion two years ago. Compared to the total asset size, $300 billion is not an exaggerated figure, but the results could be very significant for Bitcoin.
Famous Investor’s Crypto Predictions
Yusko says that since the introduction of spot Bitcoin ETFs, there hasn’t been enough entry from registered investment advisors who control all the boomers’ money. According to him, the net inflows exceeding $12 billion (ETFs’ total reserve is over $50 billion) reflect at most 10% of the potential. Thus, there is still 90% growth potential.
Spot Bitcoin ETFs were approved exactly 10 years after the Winklevoss brothers’ initial application, and US investors gained much safer freedom to hold BTC. The strong interest from investment giants like BlackRock resulted in a historic performance in just a three-month period. The total value of spot Bitcoin ETFs is approximately $53 billion.
