In a recent discussion, Morgan Creek Capital CEO, Mark Yusko, projected a highly bullish outlook for Bitcoin, anticipating that a Bitcoin spot ETF approval by the Securities and Exchange Commission (SEC) could potentially direct a whopping $300 billion into the market(1).
This approval, according to Yusko, is poised to significantly elevate institutional investment in Bitcoin.
Yusko expounded on the path towards institutional acceptance, citing that prevailing regulatory uncertainties and concerns regarding custody have so far deterred institutional investors from diving into the crypto sphere.
However, the seal of approval for a Bitcoin spot ETF in the U.S. would create a regulated and secure channel, consequently boosting confidence among institutional investors.
In the race towards securing a spot Bitcoin ETF approval, BlackRock, the world’s colossal asset manager, emerges as a strong contender among a wave of applicants.
Yusko emphasized the critical first-mover advantage in acquiring ETF approval and marked BlackRock’s entry as a crucial juncture in the evolving Bitcoin ETF narrative.
He posits an optimistic timeline of approval either by the year’s end or early 2024, a significant leap that could reshape the institutional playing field in the crypto market.
Contrastingly, Yusko’s forecast veers away from Bloomberg Senior ETF analyst Eric Balchunas’ more conservative estimation of a $150 billion market influx post-approval.
Yusko’s prediction hinges on the relatively small volume of tradable Bitcoin on the market compared to other assets, attributing the potential larger market influx to most Bitcoin being tightly held by long-term hodlers unwilling to sell.
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