According to a senior Bloomberg exchange-traded fund (ETF) analyst, approximately $150 billion in capital could potentially flow into the Bitcoin (BTC) market within the next one to two years, provided that BlackRock’s BTC spot exchange-traded fund (ETF) gains approval.
In a recent interview with journalist Paul Barron, analyst Eric Balchunas emphasized that the approval of BlackRock’s ETF could significantly raise the profile of the leading cryptocurrency among traditional financial advisors.
“If BlackRock launches an ETF for Bitcoin, it’s a game-changer. We have a saying on our team that BlackRock and Vanguard ETFs are the modern-day equivalent of IBM. What I mean by that is, if you’re a 65-year-old financial advisor who used to be a broker 30 years ago, it was commonly said that you couldn’t go wrong with IBM. It was a solid, all-American company, and none of your clients would question your choice. Now, you can’t go wrong with a BlackRock or Vanguard ETF. It’s a rock-solid choice. It’s virtually foolproof.”
Balchunas substantiates his prediction of $150 billion by drawing parallels with the value of gold ETFs and the total assets managed by financial advisors in the United States.
“When I arrive at the $150 billion estimate, here’s the rationale. First, it’s roughly the value of gold ETFs. Second, when you consider the assets managed by advisors and wealth managers, which amounts to $30 trillion serving the affluent baby boomer demographic in America, even if only 0.5% of those assets transition to Bitcoin, that would equate to $150 billion.”