Predicting Wall Street’s Influx into Spot Bitcoin ETFs
Anthony Scaramucci, the founder of Skybridge Capital, shared his perspective on the impact of spot bitcoin exchange-traded funds (ETFs) on the market. He expressed his views during an interview on The Scoop, a podcast by The Block.
Scaramucci believes that once spot bitcoin ETFs receive approval from the U.S. Securities and Exchange Commission (SEC), there will be a substantial inflow of capital from Wall Street. He explained that financial institutions and brokerage firms will be promoting these ETFs to their clients, encouraging them to allocate a portion of their portfolios to bitcoin. According to Scaramucci, this will result in over $100 billion flowing into bitcoin.
Unleashing the Sales Force
Scaramucci emphasized that the approval of spot bitcoin ETFs will unleash a sales force consisting of thousands of individuals. These professionals, who traditionally purchase ETFs like S&P ETFs or bond ETFs, will now have the opportunity to invest in the best-performing asset of the past decade: bitcoin.
He also highlighted the endorsement of bitcoin as a store of value by influential figures like Ark Invest CEO Cathie Wood. This will likely lead financial advisors to recommend digital property, such as bitcoin, as a diversifier against inflation and deflation.
The Potential Capital Influx
To estimate the potential capital inflow into bitcoin, Scaramucci suggested looking at companies like Fidelity and Blackrock, which manage trillions of dollars. A conservative estimate of allocating just 1% of their total funds managed would result in approximately $100 billion entering the bitcoin market. Scaramucci further emphasized that this calculation only considers companies that have already filed to launch spot bitcoin ETFs, excluding those that will file after SEC approval.
Hot Take: Wall Street’s Entry into Spot Bitcoin ETFs could Drive Substantial Capital Inflow
Skybridge Capital founder Anthony Scaramucci predicts that the approval of spot bitcoin ETFs will unleash a legion of salespeople from major institutions. He anticipates over $100 billion flowing into bitcoin once Wall Street actively promotes these ETFs to their clients. Scaramucci believes that financial advisors will advise their clients to allocate a portion of their portfolios to bitcoin, considering its track record as the best-performing asset of the past decade. With the endorsement of influential figures and the potential participation of companies managing trillions of dollars, spot bitcoin ETFs have the potential to drive substantial capital inflow into the cryptocurrency.
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