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Gabor Gurbacs, serving as a strategy advisor for VanEck and Tether, recently shared insights on a potential game-changer for Bitcoin exchange-traded funds (ETFs). In a social media post, Gurbacs speculated on the launch price of Bitcoin ETFs, proposing a hypothetical scenario.
With Bitcoin currently trading at around $44,000 per BTC, Gurbacs noted that ETFs typically debut with a double-digit net asset value (NAV), often around $25. To make Bitcoin exposure more accessible, he suggested a hypothetical launch price of $44 per share, eliminating three zeros from the original Bitcoin price.
In his post, Gurbacs highlighted the importance of addressing unit bias psychology, emphasizing that some investors are unaware they can own fractional amounts of Bitcoin. He noted that the emotional satisfaction of owning a full Bitcoin ETF share, as opposed to a fraction of BTC, plays a significant role in investor sentiment.
Will $2.5 trillion be enough?
In another post, Gurbacs discussed the broader impact of Bitcoin ETFs, stating that the immediate flow of funds in the initial weeks is less critical than the potential shift in global asset allocation.
With approximately $500 trillion in global assets, even a conservative 0.5% allocation to Bitcoin could result in a substantial $2.5 trillion influx, along with long-term appreciation and additional fund investments, believes the expert.
Reports from Fox Business suggest that BlackRock anticipates the approval of a spot Bitcoin ETF on Jan. 10, aligning with similar sentiments from Katie Wood of Ark Invest.
Godfrey Benjamin
Arman Shirinyan
Yuri Molchan
