CoinShares’ Chief Strategy Officer, Meltem Demirörs, believes that the possible approval of Bitcoin (BTC) exchange-traded funds (ETFs) in the spot market will not be bearish for the leading cryptocurrency. In a CNBC interview, she highlighted the relentless demand for Bitcoin, evidenced by significant investments in crypto exchange-traded products (ETPs).
Demirörs suggests that the approval of spot-based Bitcoin ETFs could lead to billions of dollars flowing into BTC. She referenced recent inflows of $243 million into crypto ETPs during the last week of 2023, totaling $2.2 billion for the year. Rumors hint at BlackRock potentially adding $2 billion, which would further drive demand for Bitcoin due to its limited supply.
On the broader crypto market, Demirörs sees conditions as not yet ripe for ETFs based on riskier cryptocurrencies. She acknowledges Bitcoin’s tested market presence and liquidity, unlike the “long tail” of other crypto assets. Despite this, investor demand remains high, with global assets under management (AUM) in crypto ETPs exceeding $50 billion, 75% of which is in Bitcoin and the next $10 billion in Ethereum.
Demirörs notes that while there is a long tail of popular assets like Solana, the market will take time to mature. As of the article’s writing, Bitcoin is trading at $44,100.