A senior exchange-traded fund (ETF) analyst from Bloomberg has suggested that a potential $150 billion influx of capital into the Bitcoin ($BTC) market could occur over the next couple of year, contingent on the green light for BlackRock’s proposed spot Bitcoin ETF.
During a recent interview with journalist Paul Barron, Bloomberg analyst Eric Balchunas said that BlackRock’s spot Bitcoin ETF could amplify Bitcoin’s prominence amongst mainstream finance professionals, noting that with a BlackRock ETF “that’s primetime.”
https://youtube.com/watch?v=WkKxfq-oq5M%3Ffeature%3Doembed
He further analogized the significance by equating BlackRock and Vanguard’s ETFs to IBM’s once unassailable reputation in the corporate world, saying that brokers and financial advisors 30 years ago “could never get fired for buying IBM” as it was a good company, meaning clients weren’t going to be dissatisfied with the move.
Balchunas further analogized that now financial professionals “can’t get fired for buying a BlackRock or Vanguard ETF. It’s just too good a deal. It’s just too bulletproof.” The base of Balchunas’ $150 billion projects comes from the current valuation of gold ETFs, and from the vast sums handled by money managers in the US.
Per his words, advisors and wealth managers have $30 trillion under their control “for the rich boomers of America basically.” He noted that if just 0.5% of that capital is allocated to the flagship cryptocurrency, it means over $150 billion.
As CryptoGlobe reported, a popular crypto market analyst has recently suggested that a key BTC metric suggests that institutional investors may have to fight over just 5% of the flagship cryptocurrency’s supply, which could send prices exponentially higher.
Per the analyst, 95% of all Bitcoin in circulation hasn’t moved over the past month. The analyst cited data from crypto analytics firm Glassnode to back his statement.
Featured image via Unsplash.
Source: Read Full Article