Loading...

Bitcoin ETFs’ long-term impact: Gabor Gurbacs shares bullish perspective

Bitcoin ETF

Most read

Loading Most Ready posts..

TL;DR

  • Gabor Gurbacs says Bitcoin ETFs might have a small start, but their long-term impact could be huge, like gold ETFs.
  • He compares Bitcoin’s future to gold’s historical success after ETFs were launched.
  • Analyst James Seyffart also believes in looking beyond short-term hype for the big, long-term gains of Bitcoin ETFs.

Bitcoin ETF expert, Gabor Gurbacs, has expressed optimism regarding the long-term potential of Bitcoin Exchange-Traded Funds (ETFs), contrasting the community’s short-term expectations. Drawing parallels with the history of gold ETFs, Gurbacs predicts significant growth in the cryptocurrency market.

Gabor Gurbacs, an advisor at VanEck, has shared his bullish outlook on Bitcoin ETFs, emphasizing the importance of long-term perspectives and comparing Bitcoin to the historical trajectory of gold ETFs. 

In contrast to the prevailing short-term hype, Gurbacs argues that the initial impact of U.S. Bitcoin ETFs may not be as substantial as anticipated, with an estimated net inflow of around $100 million, primarily consisting of recycled funds from institutional investors.

Short-Term vs. Long-Term Impact

Gurbacs cautions against overestimating the short-term impact of Bitcoin ETFs, asserting that the initial influx of funds into the market will likely be modest, composed mainly of existing institutional capital. He believes that the community’s focus on immediate gains may overshadow the significant long-term potential of ETFs in shaping the cryptocurrency market.

To illustrate his point, Gurbacs draws a parallel between Bitcoin and gold. He reflects on the launch of the first gold ETF by State Street in November 2004, highlighting the remarkable price appreciation and market capitalization growth that followed. Gold’s price quadrupled from $400 to $1800 in just eight years, and its market cap surged from $2 trillion to an astounding $10 trillion.

Bitcoin’s potential trajectory

In Gurbacs’ view, the approval of a U.S. spot Bitcoin ETF has the potential to create trillions of dollars in value for the cryptocurrency market. He likens Bitcoin’s future trajectory to that of gold, specifically referencing the year 2004 when the first gold ETF was launched. According to Gurbacs, history may repeat itself as Bitcoin follows a similar blueprint, resulting in substantial long-term benefits for the digital asset.

Community’s perspective

James Seyffart, a Senior Bloomberg Researcher, aligns with Gurbacs’ perspective, highlighting the prevailing sentiment in the community. He notes that there is a consensus that many are overly focused on expecting a massive short-term impact from Bitcoin ETFs. 

Seyffart suggests that this short-term anticipation could lead to disappointment, while simultaneously downplaying the potential longer-term effects that ETFs may have on the cryptocurrency market.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

Stay on top of crypto news, get daily updates in your inbox

Related News

Mining
Cryptopolitan
Subscribe to CryptoPolitan