In a recent interview, Matt Hougan, the Chief Investment Officer of Bitwise Asset Management, discussed the potential impact of a Bitcoin Exchange Traded Fund (ETF) approval on the current Bitcoin price. According to Hougan, the majority of financial advisors, who manage a significant 80% of U.S. wealth, do not expect the approval of a Bitcoin ETF until 2025 or later. However, he believes that once approved, the ETF could attract a new audience to Bitcoin.
Hougan drew parallels between the potential impact of a Bitcoin ETF approval and the approval of a spot gold ETF in 2004. Following the approval of the spot gold ETF, the price of gold consistently increased for several years. Hougan suggests that a similar trajectory could be seen for Bitcoin, as ETFs have the potential to significantly expand the cryptocurrency investor base, particularly among financial advisors.
Currently, only 20% of self-directed retail investors have invested in cryptocurrencies. The remaining 80% of American wealth, controlled by financial advisors and institutions, requires an ETF to gain access to the crypto markets. Therefore, the approval of a Bitcoin ETF could open up new opportunities for these investors to enter the crypto space.
Hougan also highlighted the positive impact of BlackRock’s Bitcoin ETF filing in June. He stated that this filing helped improve market sentiment and dispel the negative aftermath of the FTX collapse. Hougan referred to this phenomenon as the “ghosts of Sam Bankman-Fried,” acknowledging the influence of past events on market perception.
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