MicroStrategy CEO projects Bitcoin (BTC) ETFs to completely replace gold ETFs in two years

Fri 05 Nov 2021 ▪ 17h18 ▪ 3 min read — by Susan McCormack

The American market has just witnessed the Bitcoin futures ETFs launch, yet institutional players show more interest for Bitcoin spot exchange-traded funds that directly track the underlying asset class.

Bitcoin futures ETF: to buy or not to buy?

At the Bloomberg Financial Innovation Summit on Thursday, 4th November, Bitcoin evangelist and MicroStrategy CEO Michael J. Saylor said that Bitcoin ETFs will storm financial markets over the next three years.

Saylor added that during this period, Bitcoin ETFs will completely replace gold ETFs.

MicroStrategy CEO believes BTC to become the main asset class for the Western world and eventually replace the $425 billion fund – SPDR S&P 500 ETF Trust, ticker SPY – tracking the equity index, Coingape.com reports.

“To do that, you need the spot ETF. And once these spot ETFs roll, I think you’ll see billions, then tens of billions, then hundreds of billions, then trillions of dollars flow into them,” said Saylor.

Though two Bitcoin futures ETFs are already trading on the market – ProShares and Valkyrie – institutional players would rather opt for spot offers. According to Saylor, Bitcoin futures ETFs are inferior, but still better than nothing.

He added that for institutional investors ETFs are the right choice as they provide a regulated structure for major players in the crypto asset class. Saylor suggests that in the coming years trillions of dollars of institutional money will come to Bitcoin ETFs.

The opinion is shared by Nic Carter, co-founder of Coin Metrics, who had previously called futures products defective. “Spot Bitcoin ETFs would be the hottest commodity ETF launch of all time, attracting probably well over $100 billion in assets within a month or so,” stated Carter. He has also noted that spot Bitcoin ETFs are successfully trading in countries like Canada, adding that “there’s no explanation for the reticence at the top levels here to approve this product, which obviously should exist and would make life immensely easier for all types of different investors”.

On Wednesday, two US congressmen wrote a letter to the US SEC Chair Gary Gensler with a proposal to approve spot Bitcoin ETFs, explaining why they are more convenient for investors than their futures analogues.

There is no explanation why there are still doubts among the powers that be about this financial instrument, which would obviously make life much easier for investors.

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Susan McCormack

How many crypto nerds does it take to fork an altcoin? I may be a failed comedian, but crypto is no joke! I want to share my knowledge and help others to see the bright future ahead. #buybitcoin

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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