Gabor Gurbacs, a strategy advisor for VanEck and Tether, recently shared insights on what could be a game-changer for Bitcoin exchange-traded funds (ETFs). In a social media post, Gurbacs speculated on the potential launch price of Bitcoin ETFs, proposing a hypothetical scenario that could enhance accessibility for investors.
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, removing three zeros from the original NAV.
Gurbacs emphasized the importance of addressing unit bias psychology in the post, highlighting that some investors may not be aware they can own fractional amounts of Bitcoin. He pointed out that the emotional satisfaction of owning a full share, as opposed to a fraction of BTC, plays a significant role in shaping investor sentiment.
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. Gurbacs believes that this influx, coupled with long-term appreciation and additional fund investments, could have a profound impact.
Reports from Fox Business suggest that BlackRock (NYSE: BLK) anticipates the approval of a spot Bitcoin ETF on January 10, aligning with similar sentiments expressed by Katie Wood of Ark Invest. The anticipation around Bitcoin ETFs continues to be a focal point for the cryptocurrency market, and the potential approval could mark a significant milestone in the integration of Bitcoin into traditional financial markets.
