Bankless Bitcoin ETFs: Bullish or Bearish? with Alex Thorn
11 snips
Nov 1, 2023 
In this engaging discussion, Alex Thorn, Head of Research at Galaxy Digital and former Director of Blockchain Research at Fidelity, dives into the implications of a potential Bitcoin ETF. He explores the bullish and bearish cases, highlighting the expected influx of capital and its potential to reshape market dynamics. Alex also compares Bitcoin's market potential to gold and discusses the barriers traditional investors face. Intriguingly, he touches on the correlation between Bitcoin ETF approval timelines and price predictions.
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Bitcoin ETF's Potential Impact on US Wealth Management
- US wealth management handles $48 trillion in assets, but much of it is inaccessible to Bitcoin.
- A Bitcoin ETF could open up this market, potentially leading to substantial inflows.
Accessibility Challenges for Traditional Finance in Bitcoin
- Broker-dealers, banks, and RIAs currently lack easy access to Bitcoin due to platform limitations and risk concerns.
- A spot Bitcoin ETF would streamline this process, making Bitcoin investments more accessible.
Projected Bitcoin Inflows with an ETF (Year 1)
- Galaxy Digital's model estimates $14.4 billion in Bitcoin inflows during the first year of an ETF.
- This conservative estimate assumes only a fraction of eligible capital will be allocated to Bitcoin.