Spot Bitcoin ETFs will attract R$1.5 trillion to the market, says director of Morgan Creek

Mark Yusko, director of Morgan Creek Capital Management, expressed his expectations that the approval of spot Bitcoin ETFs could attract more than $300 billion to the cryptocurrency market. In other words, around R$1.5 trillion at the current exchange rate in reais.

Yusko shared his views during an interview with the Paul Barron Network YouTube channel, where he discussed the future of ETFs in the United States.

To date, 10 applications have been filed with the United States Securities and Exchange Commission (SEC) to launch Bitcoin ETFs. Franklin Templeton, which manages around US$1.5 trillion in assets, is one of the candidates, along with BlackRock, the world’s largest asset manager and a key figure on the global economic scene.

Yusko believes BlackRock’s entry will “completely change the rules of the game” and predicts it will be the first to get SEC approval, possibly even the only one to get it. He explained that the first company to launch an ETF will attract the most assets.

Jeff Dorman, chief information technology officer at investment firm Arca, agrees with Yusko’s view, stating that not all ETFs will attract the same demand as BlackRock’s due to their marketing ability to attract new investors to Bitcoin.

ETFs de Bitcoin

Regarding a possible date for the announcement of a Bitcoin ETF, Yusko predicts that this could occur between the end of 2023 and the beginning of 2024. The SEC is expected to announce its decision between January and March of next year.

Yusko also highlighted that the approval of a Bitcoin ETF in the United States would help build trust in the cryptocurrency market by offering investors a regulated and safe way to expose themselves to Bitcoin, eliminating the current distrust towards cryptocurrencies.

The quest for approval of Bitcoin spot ETFs has been an ongoing narrative in the cryptocurrency market since 2013, when the Winklevoss brothers filed an application with the SEC to launch the first Bitcoin spot ETF.

However, the SEC initially rejected that proposal and several others since then, citing concerns about market manipulation, custody and investor protection.