If there’s one thing people are underestimating about the approval of a bitcoin spot ETF, it’s the reality of Wall Street’s marketing engine.
At least that was the conclusion of capital allocator Anthony Scaramucci’s most recent visit to the crypto industry podcast “The premiere“.
In the interview, Scaramucci spoke at length about how a bitcoin ETF is poised to reshape the investing landscape. Notably, the founder of SkyBridge Capital stated that a “federally approved” ETF would unleash a sales force tsunami, funneling billions into cryptocurrency.
Scaramucci, a Wall Street veteran, underscored the strategic shift, saying, “There is an unspoken, not-so-secret reality of Wall Street: Products are sold, not bought.”
In his vision, traditional ETF sellers would become bitcoin evangelists, promoting the cryptocurrency to a much broader audience.
He painted a vivid picture of the sales pitch, imagining those who normally offer coffee and donuts during ETF presentations now advocating for bitcoin ETFs. “Put 1% in bitcoin,” they would say, armed with the narrative that bitcoin has been the best-performing asset of the last decade.
“The target audience for bitcoin in an ETF is tens of thousands of people,” Scaramucci said. By allowing investments ranging from $500 to “an infinite amount,” the ETF would appeal to a diverse cross-section that seeks advice from traditional brokers, including those who use platforms like E-Trade and Fidelity.
Highlighting the underappreciated power of Wall Street’s marketing machine, Scaramucci maintained that approval of the cash ETF was not fully priced in. Furthermore, he emphasized that while individual investors could already personally dabble in bitcoin, the monumental shift would come when money managers responsible for managing Billions strategically allocate 1% of their portfolios to bitcoin.
Breaking down the numbers, Scaramucci cited potential involvement from giants like Fidelity and BlackRock, suggesting that an allocation of just 1% from these two giants could funnel more than $110 billion into bitcoin.
As of today, 13 bitcoin spot ETFs are vying for approval, and industry analysts expect a 90% chance of one going live in January 2024.
