Economist Predicts Bitcoin Bull Market is Just Beginning
A widely followed economist, Alex Krüger, believes that the Bitcoin bull market is far from reaching its full potential, especially with the recent approval of spot market BTC exchange-traded funds (ETFs). In a recent interview on the 1000x Podcast, Krüger explains that while institutional adoption of ETFs has begun, it is still in its early stages. He outlines the inner workings of an ETF product and highlights the slow deployment of the institutional sales machine. According to Krüger, this sales machinery is expected to ramp up significantly by the end of the year.
The Slow Adoption of ETFs
When discussing the slow adoption of ETFs by institutional investors, Krüger breaks down the different players involved:
- ETF buyers: These are primarily retail and discount platforms.
- Institutional investors: This group includes wealth advisors and investment firms.
- Wealth advisors: They can be divided into wirehouses (such as Merrill Lynch, UBS, and Morgan Stanley) and registered investment advisors (RIAs).
- RIAs: These advisors can further be divided into independent and non-independent ones.
Krüger points out that wirehouses and RIAs are generally slow to promote new investment products like ETFs. They require a track record and minimum assets under management (AUM) before they feel comfortable recommending them to their clients. However, there have been recent headlines about Merrill Lynch and UBS starting to offer ETFs to their clients, indicating that adoption is slowly gaining momentum.
Bitcoin’s Current Price
As of now, Bitcoin is trading at $67,553, showing a 2% increase in the last 24 hours.
Hot Take: The Bull Market is Just Getting Started 🚀
According to economist Alex Krüger, the recent approval of spot market BTC exchange-traded funds (ETFs) is just the beginning of Bitcoin’s bull market. While institutional adoption of ETFs has started, it is still in its early stages. Krüger explains that the institutional sales machine, which includes wirehouses and registered investment advisors (RIAs), is slowly ramping up its promotion of ETFs. As more institutions begin offering ETFs to their clients, the demand for Bitcoin is expected to grow even further. With Bitcoin currently trading at $67,553, there’s still plenty of room for growth in the coming months.
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