James Seyffart, a top ETF analyst at Bloomberg, has expressed concern about the hype surrounding potential approval of a Spot Bitcoin Exchange-traded fund (ETF) and the projected massive capital inflow it may bring.
Bloomberg Analyst On Bitcoin Spot ETF Inflow
There is growing optimism that the United States Securities and Exchange Commission (SEC) could soon approve spot Bitcoin exchange-traded funds (ETFs), with some projections suggesting potential inflows of up to $100 billion if a Bitcoin ETF is approved.
However, James Seyffart cautioned against holding such high expectations. He believes the anticipated inflow is an overestimation of demand and may take years to materialize.
Seyffart described the projection as “extreme” and emphasized that even with gold’s long history in the US market since 2004, its value currently sits at $95 billion.
The Bloomberg analyst’s remarks were in response to mathematician Fred Kruger’s social media post speculating a potential $100 billion inflow into Bitcoin and its potential impact on the cryptocurrency’s price.
Multiple ETF Applicants Meet With The SEC
Recent reports indicate that several ETF applicants have held meetings with the US regulator. Seyffart highlighted that four distinct issuers, including Blackrock, Grayscale, Fidelity, and Franklin, have met with the SEC about their BTC filings in the past few days.
These meetings, attended by the Division of Trading and Markets and the Division of Corporate Finance, will influence the decision on whether the 19b-4’s & S-1’s would be approved or denied.
Blackrock’s application is expected to be decided by January 15, 2024.
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