In an interview with CNBC, Grayscale Investments chief executive Michael Sonnenshein expressed optimism about the anticipated approval of spot Bitcoin exchange-traded funds(ETFs). He projected that the approval of the investment vehicle that has been elusive for the US will impact the overall markets.
Sonnenshein reflected on investors’ optimism for the Bitcoin market, with the majority executing massive additions of the lead token to their portfolios. The executive indicated that he projects that spot ETFs are a welcome addition that will help unlock Bitcoin exposure to the investment community yet to invest in the digital token.
Spot Bitcoin ETF to Stimulate Vast Funds’ Inflow
Sonnenshein outlined that he considers spot Bitcoin ETF likely to trigger a vast inflow of resources, estimating $30 trillion of advised wealth. He admitted that Grayscale is set to play a critical role as a frontrunner in the quest for a Bitcoin ETF approval spot.
Sonnenshein’s optimistic view of spot ETF approval, particularly with Grayscale Investment representatives meeting with the US Securities and Exchange Commission (SEC). The November 22 meeting involves SEC’s executives within the trading and markets division in a conversation about Bitcoin trust conversion into the ETF.
Grayscale’s optimism is echoed by Jan3 chief executive Samson Mow, who indicated that ETFs would accelerate the funds flow into Bitcoin. As such, ETFs will assume the branding and marketing roles to convey varying aspects of Bitcoin.
The optimism of looming approval at the onset of 2024 is informed by the series of meetings involving SEC with BlackRock and Grayscale Investments considered frontrunners in the race for the ETF.
Mow indicated in a thread published on X (previously Twitter) that competition between various asset management will stimulate fierce advertising rivalry that will benefit Bitcoin.
The optimism conveyed by Grayscale’s boss echoes the December 19 projection by MicroStrategy chair Michael Saylor. The co-founder of the business intelligence firm indicated that the spot Bitcoin ETFs would constitute the vital development realized by Wall Street in three decades.
Saylor observed that Bitcoin ETFs would constitute the catalyst fueling accelerated demand for Bitcoin. The former chief executive at MicroStrategy considered that spot ETFs would constitute the gateway that mainstream retail and institutional investors would tap to gain Bitcoin exposure.
Spot EFT Approval Considered Catalyst to Ultra-Bullish Bitcoin
The anticipated approval of spot Bitcoin ETFs has yielded a contest, with some market observers ruling out an astronomical rally for Bitcoin to double figures. Crypto investor Antony Pompliano considers the ETF will stimulate an ultra-bullish development, though unlikely to translate to a tectonic movement in the market.
Pompliano admits that while the approval coincides with Bitcoin halving, investors seeking the token are aware of the looming scarcity in reward for each block completed. As such, they have proactively prepared for the reduced Bitcoin reward for every Block completed from 6.5 to 3.125 units.
Bitcoiner Oliver Velez likened Bitcoin ETFs to purchasing the actual Bitcoin. He indicated that investors acquiring the spot BTC ETF are purchasing paper Bitcoin, the cost of which is charged annually.
Velez considers such to differ from acquiring the real BTC with a lifetime cost. The Bitcoin supporter disclosed that the real Bitcoiners will only have actual BTC without incurring the custody costs.
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