Despite the numerous attempts to get a Bitcoin ETF approved by the US Securities and Exchange Commission, the SEC’s current chairman Jay Clayton has continually rejected proposals, citing investor protection issues. However, despite this decision, Gabor Gurbacs, a crypto & digital asset strategist and ETF advisor at VanEck in New York, believes the impact of a Bitcoin ETF on the cryptocurrency spot market is being overestimated.
Gurbacs claims that while a Bitcoin ETF may produce short-term gains for Bitcoin, the long-term gains it could produce can be even more significant. He believes that the ETF would open up the asset to more investors who currently cannot put their money directly into cryptocurrency markets, potentially leading to an influx of new capital. This, in turn, could lead to increased cryptocurrency adoption and availability, helping to drive down prices while also making digital currencies more mainstream. Moreover, Gurbacs argues that the influx of institutional investors who will be investing in Bitcoin through a Bitcoin ETF would provide an extra layer of stability to the otherwise volatile crypto asset.
Ultimately, Gurbacs’ argument suggests that while a Bitcoin ETF would undoubtedly have an impact on the spot Bitcoin market, its long-term benefits to the overall cryptocurrency market could be invaluable. Thus, while the SEC’s refusal to approve a Bitcoin ETF may be disheartening, it’s important to focus on the bigger picture and understand how such an ETF may strengthen digitalcurrency markets in the future.
