In a recent interview, Mark Yusko, the Founder, CEO, and CIO of Morgan Creek Capital Management, offered insights on the expected timeline for approving Bitcoin exchange-traded funds (ETFs). Yusko discussed key dates and expressed high confidence in the potential approval of BlackRock’s application. His projections suggest a decision could occur by mid-January or extend to mid-March, with significant market implications anticipated before the Bitcoin halving event.
Anticipating the Bitcoin ETF approval
Yusko’s comments indicate robust optimism regarding approving Bitcoin ETFs, particularly pointing to BlackRock’s application. He conjectured two possible dates for the decision: January 15th or a delay until March 15th. His analysis underlines the strategic timing of these decisions, occurring before the Bitcoin halving – an event known to historically impact Bitcoin’s value. Yusko stated, “They either have to deny them or are deemed effective. And as I said, I think there’s zero chance that BlackRock doesn’t get approved.”
According to Yusko, this approval could lead to considerable market activity, hinting at a possible surge in Bitcoin’s value. He used the term “fireworks” to describe the potential market response, underscoring the significance of this event in the context of Bitcoin’s price movement and investor interest.
After the Bitcoin ETF approval, the conversation also discussed the potential for an Ethereum spot ETF. Yusko suggested that the approval of an Ethereum ETF could happen almost immediately after Bitcoin’s, indicating a rapid expansion of the cryptocurrency ETF market. However, he highlighted the resistance from major banks, pointing out their concerns over market manipulation and the risks associated with “naked short” selling.
Yusko’s comments reflect the tension between traditional financial institutions and the burgeoning cryptocurrency market. He emphasized the importance of regulatory considerations in this evolving landscape, particularly focusing on how banks adapt to the growing demand for cryptocurrency services.
Regulatory challenges and the future of crypto custody
Delving into the broader implications of cryptocurrency adoption, Yusko expressed concerns over potential regulatory hurdles, including outlawing Bitcoin’s self-custody. This aspect is critical as it touches upon the fundamental principle of decentralization in cryptocurrency. Yusko stressed the importance of vigilance in the face of these challenges, especially as the financial world gradually shifts towards decentralized systems.
Additionally, Yusko commented on the trend of banks offering crypto custody services. He recognized the impact of these services on the industry while cautioning viewers about the risks associated with custody in centralized systems. According to Yusko, relying on centralized custody equates to relinquishing control, which contradicts the ethos of cryptocurrency’s decentralized nature.
