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.
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.