Gabor Gurbacs, a digital asset strategist at U.S-based investment management firm, VanEck Investments, recently discussed the amount of inflow Bitcoin is expected to have if spot exchange-traded funds (ETFs) applications are approved. He predicts that the leading cryptocurrency will see a whopping $2.5 trillion flowing into it.
Discussing the broader impact of Bitcoin spot ETF approval in a post on the social media platform X (formerly Twitter), Gurbacs pointed out that roughly $500 trillion has been poured into assets globally. Therefore, an assumed 0.5% allocation towards Bitcoin would represent a $2.5 trillion influx.
Gurbacs Reasons for $2.5 Trillion Inflow
Gurbacs said that the $2.5 trillion inflow is even an initial wave, adding that with further appreciation, additional fund and fund-of-funds (FoF) investments, and credit expansion could boost the total figure higher in the long run.
Gurbacs also mentioned that the approval of the Bitcoin spot ETF applications will see cryptocurrency experiencing more adoption. The presence of digital assets managers like VanEck, BlackRock, Valkyrie, Grayscale, and Bitwise offering the product will remove friction thereby making it easier for more people to invest in Bitcoin.
Additionally, he pointed out that the central banks’ money printing sprees, coupled with inherent weaknesses in fiat currencies, will continue to fuel asset inflation, effectively moving decimal points and shifting wealth towards assets like Bitcoin.
He added “Bitcoin/assets have no top because fiat has no bottom”, suggesting that, unlike traditional assets with inherent limitations, Bitcoin’s potential value is unfazed by the same forces that can devalue fiat currencies.
Gurbacs’s Opinion on Standard Chartered Bank Prediction
Gurbacs also mentioned Standard Chartered Bank’s forecast of $50-$100 billion inflows into spot Bitcoin ETFs upon approval of the investment product in 2024. The bank expects that the product approval will propel the price of Bitcoin which is currently valued at $47,000 to increase to $200,000 by the end of 2025.
However, Gurbacs said that he prefers to look longer term. Unlike Standard Chartered Bank estimated in billions, he sees value in trillions. Adding to his comment, Gurbacs stated that the presence of an ETF would make financial services firms and regulators who hate Bitcoin change their minds concerning the asset thereby leveling up its adoption.
