VanEck Director for Digital Assets Strategy Gabor Gurbacs thinks people may have been overestimating the potential impact of the launch of spot Bitcoin (BTC) exchange traded funds (ETFs) in the US. With that, it may come as a letdown when the sky-high expectations will not be initially met. On the other hand, he advises everyone not to underestimate their long-term effect.
The VanEck Advisor’s Forecast
Gurbacs tried to quell the skyrocketing prospects centering on the short-term effects of spot Bitcoin ETFs in the US in an X post. The VanEck director explained that, at most, only $100 million in net inflows from “mostly recycled money” could be unleashed by the institutions involved.
Gurbacs expressed a more bullish perspective on their long-term influence on BTC prices instead. He used gold ETFs as an example to illustrate the possible short- and long-term outcomes of spot Bitcoin ETFs in BTC prices.
The VanEck analyst pointed out that when gold ETFs were introduced by State Street in 2004, their effects were barely noticeable in gold prices. Eight years past their launch, however, gold climbed from $400 to $1,800 while its market cap surged from $2 trillion to $10 trillion.
Gurbacs believes Bitcoin may follow gold’s course in relation to its spot ETFs. The only difference is that BTC may achieve new heights “much faster” because of its already known supply limit and halving events, which emphasizes BTC’s scarcity.
Bloomberg analyst James Seyffart chimed in on the prediction of Gurbacs’ in agreement. He said the public is too focused on the excessive projections of spot Bitcoin ETFs that it may come as a letdown when their soaring expectations will not be realized. Due to this, they tend to overlook the long-term impact it brings to the table.
VanEck Releases New Spot Bitcoin ETF Ad
According to the US Securities and Exchange Commission (SEC) website, VanEck just updated its spot Bitcoin ETF application on Friday. The amendment ditches the in-kind redemption model in favor of an in-cash system following the regulator’s earlier recommendation. It also mentions Coinbase as the company’s custodian for its new financial instrument.
At the same time, VanEck released its spot Bitcoin ETF ad, which indicates its strong optimism towards its filing’s approval by the SEC. This comes hot on the heels of similar commercials by its rivals Bitwise and HashDex nearly two weeks ago.