As the crypto community continues to anticipate the approval of spot Bitcoin (Exchange Traded Funds) ETFs by the United States Securities and Exchange Commission (SEC), Gabor Gurbacs, a renowned digital assets investment expert, has taken to X to reveal the possible impacts of the approval on Bitcoin.
Read Also: XRP Attorney Suspects Likely SEC Rug Pull Ahead Of Spot Bitcoin ETF Approval
Gurbacs spotlighted gold, a globally recognized precious metal, and a potent Bitcoin rival, to drive his assertion.
Notably, his claims were centered around gold’s exponential growth after the SPDR (State Street) Gold ETF introduction on November 18th, 2004.
Gurbacs noted that following gold’s integration with the ETF, the valuable metal experienced tremendous growth in global adoption rates that saw it spike to remarkable price highs.
Gold recorded massive increments in both selling price and market capitalization in the space of eight years. The precious metal asking price surged from $400 to $1800 while its market cap increased from $2 trillion to $10 trillion.
Relating gold’s journey to becoming one of the most-priced non-monetary assets to Bitcoin, Gurbacs noted that Bitcoin will replicate a similar trend as gold. However, he stated that Bitcoin’s journey in the subsequent years after the spot ETF approval will be faster.
An extract from the tweet read thus, “Bitcoin’s market cap is ~$750 Billion today, less than 1/3rd of what gold was in 2004. In my view, upon the approval of a U.S. spot Bitcoin ETF, Bitcoin’s price trajectory could follow gold’s blueprint from 2004 and the years after just much faster.”
The digital investment expert noted that he is convinced that only a few $10 billion will emanate from adopting Bitcoin (Exchange Traded Product) ETP.
According to him, these funds will stem mainly from 2 sources: Low BTC flow playing out because of long-term holders and the systemic scarcity that could arise following the Bitcoin halving event.
Gurbacs also spoke about Bitcoin’s current position in investment portfolios becoming “legitimized and destigmatized,” adding that it would boost adoption outside the ETF market.
Read Also: Experts Deliberate on Why BlackRock’s Bitcoin ETF Ticker Was Removed from DTCC Website
Commenting on nation-states and sovereign wealth funds, Gurbacs remarked that henceforth, they would hold their BTCs directly while attempting to secure optionality for their Bitcoin-based capital markets.
Bitcoin, being the number one cryptocurrency, has a way of controlling the prices of other digital assets in the crypto sphere. When Bitcoin increases in value, other cryptocurrencies are most likely to follow suit. The same applies when Bitcoin decreases in value.
The above explains why XRP, Ethereum (ETH), Solana (SOL), Cardano (ADA), and Shiba Inu (SHIB) seem poised for significant boosts in value. It is left to see how the event unfolds.
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