Swan CEO: ETF Multiplier Effect Will Boost Bitcoin
02 Feb, 2024 ● Crypto people
According to Cory Klippsten, CEO of Swan Bitcoin, more money will go straight into Bitcoin than into exchange-traded funds (ETFs) as a result of the marketing surrounding the officially recognized spot Bitcoin exchange-traded funds.
This phenomenon is known by him as "The ETF multiplier effect."
“Because of the existence of the ETFs and the credibility of these large financial firms getting into the space and validating it in the eyes of investors [...] A lot more Bitcoin will be purchased through all the other sellers around the world,” Klippsten stated.
Even though the price of Bitcoin has been under pressure due to capital outflows from the Grayscale Bitcoin Trust (GBTC), Klippsten is extremely optimistic about the long run.
Because Consenys and the Ethereum Foundation have sway over US regulators, Klippsten thinks "there is a pretty good likelihood" that an Ethereum ETF will be approved soon in the US.
Even though Etheruem might gain credibility from an ETF approval, according to Klippsten, the second-largest cryptocurrency will still be seen as centralized, in contrast to Bitcoin.
“It will trade like a tech stock at best", he predicted.
Sources:
https://cointelegraph.com/news/etf-multiplier-effect-spark-btc-frenzy-swan-bitcoin-ceo-predicts
