Speculation on Bitcoin ETF Price Arises from Tether and VanEck Advisor
Gabor Gurbacs, a strategic advisor for VanEck and Tether, has sparked speculation and increased anticipation surrounding Bitcoin ETFs. Known for his insightful social media posts, Gurbacs has proposed a hypothetical launch price for Bitcoin ETFs at $44 per share. This suggestion aims to address the psychological aspect of investment and cater to investors who prefer owning a full share rather than fractional amounts.
While the initial flow of $500 million or $5 billion into Bitcoin ETFs in the first weeks may not be of great significance in the long run, what truly matters is the access to Bitcoin that approximately $500 trillion in global assets can potentially bring. This includes both physical and financialized forms of Bitcoin. Gurbacs shared this insight on Twitter, emphasizing the massive potential for Bitcoin to enter the global asset market.
Gurbacs’ proposition of a $44 per share launch price seeks to address investor psychology and offer a more satisfying ownership experience. However, this suggestion comes at a time when the financial services industry holds contrasting sentiments. According to a report from Fox Business, industry giants like BlackRock and Katie Wood of Ark Invest are optimistic about a positive decision from the SEC on January 10. However, a recent survey involving 437 financial advisers reveals skepticism, with only 39% expecting a Bitcoin ETF approval in 2024.
As the industry eagerly awaits potential SEC approval, the final steps for the ETF’s debut are underway. Asset managers are expected to submit crucial details such as remaining fees and tickers through S-1 filings by January 8. However, BlackRock’s ETF details remain undisclosed, adding to the mystery surrounding its launch. Analysts predict that the SEC’s approval of the long-awaited Bitcoin spot ETF will likely occur by late Tuesday or Wednesday.
Katie Greifeld of Bloomberg has highlighted the deadline for ETF issuers to submit S-1 filings by Monday, 8 AM ET. The SEC plans to vote on the 19b-4s and S-1s in the following days, marking a crucial moment for the decision on Bitcoin ETFs.
Gurbacs’ insights into the psychological biases surrounding these debates contribute to ongoing discussions. Whether the market witnesses a breakthrough with the debut of a Bitcoin ETF or faces further delays, speculations about the launch price persist, indicating a potential turning point for Bitcoin’s accessibility and market sentiment.
Gurbacs also emphasizes the significant potential of Bitcoin ETFs, highlighting a global shift in asset allocation. With $500 trillion in global assets, a modest 0.5% allocation to Bitcoin could inject $2.5 trillion into the market, leading to long-term growth and additional fund investments.
In the crypto space, firms like VanEck and Gemini have stood out for their custody partnership and filing for the first Bitcoin ETF, showcasing their strong understanding of market dynamics. On the other hand, Fidelity’s decade-long commitment to building robust Bitcoin infrastructure demonstrates their dedicated focus on cryptocurrency, setting these firms apart in the industry.