Bloomberg's top ETF analyst James Seyffart has expressed concerns amid ongoing speculation about a massive capital influx if a Spot bitcoin exchange-traded fund (ETF) is approved.
Bloomberg Analyst on bitcoin Spot ETF Entry
There is growing optimism that the United States Securities and Exchange Commission (SEC) will soon allow spot bitcoin exchange-traded funds (ETFs). Along with the anticipation is the projection that if a bitcoin ETF is approved, it could see an inflow of up to $100 billion.
Because of this, James Seyffart has publicly stated warned Traders are opposed to maintaining these types of expectations. According to the analyst, he believes that the projection is an overestimation of demand. He then stressed that it could take years to record such a massive volume.
Seyffart stated that it is “extreme” to predict such an entry into the market, particularly in light of the fact that gold has been on the market for a while. He also pointed out that although gold has existed in the United States since 2004, the value of the asset in the country amounts to 95 billion dollars.
The Bloomberg analyst's warning came in response to prominent mathematician Fred Kruger's post on X (formerly Twitter) about a possible $100 billion influx into bitcoin. In Post
Furthermore, he stated that with btc receiving an influx of $100 billion, the price of the crypto asset could increase 10 times. He then made a rough calculation that if btc is at $50,000, the $100 billion inflow at that price will amount to 2 million btc.
However, he noted that this is a small supply, so the price has to increase to meet demand for the digital asset. He further noted that obtaining these 2 million btc will be difficult as the major holders of the asset are not willing to sell theirs.
Several ETF applicants meet with SEC
A recent report reveals that several ETF applicants have met with the US regulator lately. Bloomberg ETF analyst James Seyffart has highlighted that around 4 different issuers have met with the SEC about their btc filing in the last few days.
According to the analyst, Blackrock met with the regulatory body for the third time in as many weeks. Meanwhile, other issuers such as Grayscale, Fidelityand Franklin met with the SEC last week.
Furthermore, Seyffart highlighted that each of these meetings was attended by both the Trading and Markets Division and the Corporate Finance Division. He also added that these two divisions will be responsible for deciding if and when 19b-4 and S-1 will be approved or rejected.
However, the US regulator is expected to decide on Blackrock's application by January 15, 2024.
Featured image from iStock, chart from Tradingview.com
