In a recent social media post, Gurbacs, who serves as a strategic advisor to VanEck and Tether, provided noteworthy insights into key developments in Bitcoin exchange-traded funds (ETFs). Gurbacs speculated on the launch price of a Bitcoin ETF, proposing a hypothetical scenario that could reshape investor accessibility to the cryptocurrency.
With Bitcoin currently trading at around $44,000 per coin, Gurbacs suggested that ETFs typically debut with a double-digit net asset value (NAV), typically around $25. To improve accessibility and address unit bias psychology, he suggested a hypothetical offering price of $44 per share, removing three zeros from the original value.
Gulbacks stressed the importance of addressing unit bias psychology, noting that some investors may not know they can own small amounts of Bitcoin. Gulbacks said the emotional satisfaction that comes from owning an entire stake rather than a fraction plays a crucial role in shaping investor sentiment.
In a separate article, Gurbacs delves into the broader implications of a Bitcoin ETF, claiming that the immediate flow of funds in the first few weeks is less important than potential shifts in global asset allocation. With global assets around $500 trillion, even a conservative allocation of 0.5% to Bitcoin could result in an influx of $2.5 trillion. Gulbacks believes this influx, coupled with longer-term appreciation and additional fund investment, could have a transformative impact.
In a related development, reports from Fox Business indicate that BlackRock (NYSE: BLK ) is expected to approve a spot Bitcoin ETF on January 10, similar to what Ark Invest’s Katie Wood expressed Same point of view.
