Anthony Pompliano Suggests Bitcoin ETF Providers Could Invest $100 Million in the Initial Year
Anthony Pompliano has made a series of predictions concerning the highly anticipated approval of the Bitcoin spot ETF. As the approval of the ETF draws near, Pompliano foresees significant advancements in the cryptocurrency market.
In his initial prediction, Pompliano expects the Bitcoin spot ETF to be approved on a Wednesday, followed by the commencement of trading on Thursday. He emphasizes the importance of a quick turnaround, challenging historical concerns about delays between approval and trading.
The second prediction revolves around the expected inflow of funds into the approved ETF. Pompliano suggests that the ETF could attract a substantial $2 billion in assets under management (AUM) within the first 48 hours. This projection exceeds the initial inflows of the Futures-based Bitcoin ETF, making it a remarkable event in the financial market.
Looking ahead to the first 30 days after approval, Pompliano envisions AUM growing to $5 billion. He notes that this rapid growth would represent approximately 5% of the gold market, highlighting the potential scale of adoption within the initial month.
Pompliano specifically mentions BlackRock as a potential winner, surpassing even Grayscale in terms of assets. He also delves into the marketing aspect, predicting that various spot ETF issuers will spend at least $100 million on marketing within the first year. He points out the restrictions on directly advertising the ETF, leading to a wide and diverse marketing approach across different channels.
Pompliano predicts that within the first 12 months, at least one sovereign wealth fund will announce its investment in the Bitcoin spot ETF.
As interest in the Bitcoin spot ETF intensifies, Pompliano expects speculation surrounding an Ethereum spot ETF to increase, especially towards the end of the first quarter. This speculation follows a similar trajectory seen with Bitcoin and sets the stage for potential developments in the Ethereum market.
Addressing the issue of Bitcoin’s volatility, Pompliano presents a somewhat contrary view. He suggests that over the next three years, Bitcoin’s volatility will significantly decrease. In his final prediction, Pompliano forecasts a reduction in Bitcoin’s compound annual growth rate (CAGR) to 20% within the next five years.
Tags: Bitcoin ETF