Spot Bitcoin ETF could bring $30 trillion into the market — Grayscale CEO

As preparations for spot Bitcoin (BTC) exchange-traded funds (ETFs) continue, executives from across the crypto community have been sharing their opinions on how the new investment vehicle for crypto could affect the overall markets.

In a CNBC interview, Grayscale CEO Michael Sonnenshein expressed his belief that there’s a lot of optimism in the BTC market again, and many investors are adding Bitcoin to their portfolios. The executive also said that he’s looking forward to the advent of spot Bitcoin ETFs to unlock Bitcoin exposure to a part of the investment community that has not yet had the chance to invest in BTC. Sonnenshein explained:

Grayscale is one of the frontrunners gunning for spot Bitcoin ETF approval. On Nov. 22, representatives from Grayscale met with the trading and markets division of the United States Securities and Exchange Commission (SEC) to discuss the details of its flagship Bitcoin trust, which the firm wants to convert into an ETF.

Apart from funds flowing into Bitcoin, Jan3 CEO Samson Mow, who predicted that ETFs could propel Bitcoin prices to $1 million, believes that the ETFs could help in the branding and marketing aspect of Bitcoin.

The #Bitcoin ETF is the MEMO.

Most people don’t understand how significant the ETFs are in terms of marketing and branding. They will bring a flood of capital, but equally important is the message or memo that’s being sent out. pic.twitter.com/epiL8xoXhr— Samson Mow (@Excellion) December 19, 2023

In a thread on X (formerly Twitter), Mow explained how the competition between asset managers for more assets under management (AUM) will spur an advertising battle that will be good for Bitcoin.

On Dec. 19, MicroStrategy co-founder Michael Saylor said that Bitcoin ETFs would be the most significant development in Wall Street in 30 years. Saylor explained that the ETFs will be a catalyst that drives demand into Bitcoin. The executive believes it will open the door for mainstream retail and institutional investors to gain exposure to Bitcoin.

While some may anticipate that the price of Bitcoin will soar, others think the price “won’t double” overnight, even with the ETF approvals. Crypto investor Anthony Pompliano believes the ETF is an “ultra bullish development” but will likely not move a large market.

More than 90% of all bitcoin is already in circulation.

70%+ is held by people who refuse to sell.

Tens of billions of dollars of demand are on the way with the spot ETF.

You learned what happens next when your Economics 101 professor taught you supply and demand.

Wild.— Pomp (@APompliano) December 19, 2023

Meanwhile, Bitcoiner Oliver Velez compared buying Bitcoin ETFs to buying “real Bitcoin.” According to Velez, buying a spot BTC ETF is like “buying paper Bitcoin” with a cost charged yearly, while buying real BTC is a “once in a lifetime cost.” The Bitcoin supporter said that real Bitcoiners will only deal with real BTC with no custody costs.