The Long-Term Impact of Spot Bitcoin ETFs: Insights from Vaneck’s Director

Underestimating the Potential

Vaneck's director of digital assets strategy, Gabor Gurbacs, believes that the long-term impact of spot bitcoin exchange-traded funds (ETFs) is often underestimated. He suggests that if the U.S. Securities and Exchange Commission (SEC) approves a spot bitcoin ETF, bitcoin's price trajectory could replicate gold's growth pattern from 2004 and beyond, but at a much faster pace.

Predictions for the Future

Gurbacs shared his thoughts on the potential impact of U.S. spot bitcoin ETFs on social media platform X. Vaneck is one of the asset management firms that have applied to launch a spot bitcoin ETF with the SEC. While acknowledging that the initial impact of U.S. bitcoin ETFs might be overestimated, Gurbacs expects only a few hundred million dollars in mainly recycled funds.

However, he believes that people often overlook the bigger picture and fail to recognize the transformative power of bitcoin beyond ETFs. Bitcoin is reshaping its own capital markets systems and products, and this is not yet reflected in its price. Gurbacs suggests that it is not a question of which traditional financial institution adopts bitcoin, but rather which bitcoin company becomes the next influential entity like Blackrock.

Gold's Growth as a Parallel

Gurbacs draws a parallel between gold and bitcoin, emphasizing that gold's historical growth can serve as a guide. He refers to his previous post on Dec. 6, where he explains that the approval of a U.S. spot bitcoin ETF could potentially generate trillions of dollars in value for bitcoin.

The director highlights the introduction of the SPDR Gold Shares ETF (GLD) on Nov. 18, 2004. Over the subsequent eight years, gold's price quadrupled, reaching $1,800 and adding approximately $8 trillion in market capitalization. Gurbacs points out that bitcoin's current market cap is around $750 billion, less than one-third of what gold was in 2004. He suggests that if a U.S. spot bitcoin ETF is approved, bitcoin's price trajectory could mirror gold's growth, but at a much faster rate.

The Boost and Further Adoption

Gurbacs expects the boost from bitcoin ETF adoption to be significant, although not all at once. He predicts that only a few tens of billions of dollars will come from bitcoin exchange-traded products (ETPs) adoption. Nevertheless, he highlights the importance of a relatively low bitcoin float and systematic scarcity through halving schedules.

Beyond price effects, Gurbacs believes that the ETF itself will legitimize and destigmatize bitcoin's position in investment portfolios, leading to wider adoption outside of the ETF market. He also foresees nation states and sovereign wealth funds holding bitcoin directly and securing optionality for mining and their own bitcoin-based capital markets. Gurbacs cites the example of central banks' gold adoption outside of ETPs, which played a crucial role in driving gold's price increase.

Are You Convinced?

What are your thoughts on the potential impact of spot bitcoin ETFs on bitcoin? Share your opinion in the comments section below.

Frequently Asked Questions

Is gold a good investment IRA?

Anyone who is looking to save money can make gold an excellent investment. You can also diversify your portfolio by investing in gold. There is much more to gold than meets your eye.

It's been used throughout history as a currency, and even today, it remains a popular form of payment. It's sometimes called “the world's oldest money”.

Gold is not created by governments, but it is extracted from the earth. It's hard to find and very rare, making it extremely valuable.

The supply and demand for gold determine the price of gold. The strength of the economy means people spend more, and so, there is less demand for gold. Gold's value rises as a result.

The flip side is that people tend to save money when the economy slows. This increases the production of gold, which in turn drives down its value.

This is why both individuals as well as businesses can benefit from investing in gold. If you invest in gold, you'll benefit whenever the economy grows.

Additionally, you'll earn interest on your investments which will help you grow your wealth. If gold's value falls, you don't have to lose any of your investments.

What is the tax on gold in Roth IRAs?

An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.

If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.

The rules that govern these accounts differ from one state to the next. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you to delay withdrawals until April 1. New York has a maximum age limit of 70 1/2. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.

How much do gold IRA fees cost?

$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance and any investment costs.

You may have to pay additional fees if you want to diversify your portfolio. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer free checking, but charge monthly fees for IRAs.

Most providers also charge annual management costs. These fees are usually between 0% and 1%. The average rate is.25% annually. However, these rates are typically waived if you use a broker like TD Ameritrade.

How Much of Your IRA Should Include Precious Metals?

The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don't have to be rich to invest in them. There are many ways to make money on silver and gold investments without spending too much.

You might also be interested in buying physical coins, such bullion rounds or bars. Also, you could buy shares in companies producing precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.

No matter what your preference, precious metals will still be of benefit to you. These metals are not stocks, but they can still provide long-term growth.

They also tend to appreciate over time, unlike traditional investments. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.


  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (
  • You can only purchase gold bars at least 99.5% purity. (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (
  • Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (

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How To

Investing with gold or stocks

This might make it seem very risky to invest gold as an investment tool. Many people believe that investing in gold is not profitable. This belief arises because most people believe that the global economy is driving down gold prices. They believe they would lose their money if they invested gold. In reality, however, there are still significant benefits that you can get when investing in gold. Here are some examples.

The oldest form of currency known to mankind is gold. There are thousands of records that show gold was used over the years. It was used all around the world as a reserve of value. It is still used as a payment method by South Africa and other countries.

It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. You must determine how much gold bullion you can afford per gram before you consider buying it. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.

It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. So, although gold prices have declined in recent years, the cost of producing it has not changed.

The amount of gold that you are planning to purchase is another important consideration when deciding whether or not gold should be bought. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. If you plan to do so as long-term investments, it is worth looking into. If you sell your gold for more than you paid, you can make a profit.

We hope this article has given you an improved understanding of gold investment tools. We recommend that you investigate all options before making any major decisions. Only after you have done this can you make an informed choice.


By: Kevin Helms
Title: The Long-Term Impact of Spot Bitcoin ETFs: Insights from Vaneck's Director
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Published Date: Tue, 02 Jan 2024 03:30:47 +0000

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