- VanEck Adviser Gabor Gurbacs has warned of potential underperformance in Bitcoin ETFs’ initial impact.
- He envisions a long-term bullish run comparable to gold’s trajectory.
- Other industry analysts have shared similar opinions regarding the long-term potential of Bitcoin ETFs.
The advent of the new year edges the cryptocurrency industry a step closer to the impending decision on Bitcoin exchange-traded funds (ETFs) . With the SEC ‘s January 10 deadline looming, expectations are heightened for a potential approval, which could mark a major shift for Bitcoin and foster broader adoption.
While many forecasts predict an immediate optimistic trajectory in Bitcoin performance upon ETF approval, industry analysts are now evaluating the realism of both potential short and long-term outcomes.
Bitcoin ETFs: Long-Term over Short-Term
On December 31, VanEck Adviser Gabor Gurbacs scrutinized the overestimation of the influence of Bitcoin ETFs and the underestimation of their long-term benefits.
Gurbacs emphasized that while the launch of Bitcoin ETFs may not have an immediate extensive impact on the market performance of Bitcoin, it possesses the potential to generate trillions of dollars in revenue for the industry.
His sentiment is anchored in parallels between Bitcoin ETFs and the 2004 SPDR Gold ETF, resulting in an $8 billion increase in gold’s market capitalization and a price surge from $800 to $1400. He emphasized that Bitcoin’s price may follow a similar pattern post-approval, akin to gold’s trajectory after the introduction of its ETF.
The VanEck analyst underscored that the approval of a Bitcoin ETF will legitimize its position within portfolios and pave the way for broader adoption and increased participation.
Gurbacs is not alone in his optimism for Bitcoin’s long-term benefits.
Bitcoin ETF Short-Term Letdown
In resonance with Gurbacs’s sentiment, Bloomberg analyst James Seyffart emphasized that the short-term expectations of Bitcoin ETFs are overshadowing its long-term potential.
“People are focused on a massive short term impact that I think could be a bit of a let down while at same time not fully appreciating the potential longer term impacts.”Seyffart has consistently charted an optimistic course for Bitcoin ETFs and urges a balanced perspective that acknowledges immediate expectations and enduring potential.
Furthermore, analyst Eric Balchunas cautions against judging Bitcoin solely based on the 2021 frenzy, emphasizing the shift towards attracting larger players, such as advisors and institutions, who are more discerning and cautious with market conditions.
On the Flipside
- Investors anticipate a surge in Bitcoin price and predict an $80,000 point upon ETF approval.
- Bitcoin’s current market capitalization is $830 billion, less than one-third of gold’s market cap in 2004.
- The SEC is likely to approve Bitcoin ETFs before January 10, 2024.
