The long-awaited approval for spot bitcoin ETFs by the SEC may finally be on the horizon, with Valkyrie co-founder and CIO Steven McClurg anticipating a significant influx of $10 billion or more into these ETFs by the year’s end. The first week of trading alone is expected to bring in around $2 to $3 billion, and when factoring in market movements, the total assets under management (AUM) in spot bitcoin ETFs could reach $20 billion.
Key Takeaway
Steven McClurg, co-founder of Valkyrie, anticipates substantial inflows of
0 billion or more into spot bitcoin ETFs by the end of the year, with the potential for total AUM to reach $20 billion when considering market movements.
Expectations and Projections
McClurg also expressed his belief that the price of bitcoin will surge to $150,000 or higher before the end of 2024, citing a potential supply shock that could drive the price forward. He attributed this anticipated buying activity to the ETF creating a scarcity of supply. Additionally, he predicted a return to a bull cycle after the halving, and suggested that the Federal Reserve’s potential decision to lower rates ahead of the election could increase risk excess.
Spot Bitcoin ETF Applicants
Valkyrie is among the 11 applicants vying for a U.S. spot bitcoin ETF, alongside prominent firms such as BlackRock, Grayscale, and Fidelity. McClurg’s optimism is bolstered by the impending demand for spot bitcoin ETFs, and he shared insights on why he believes futures bitcoin ETFs will eventually phase out once the spot bitcoin ETF is approved.
Market Developments and Strategy
Regarding the recent developments, McClurg highlighted the strategic shift made by Valkyrie in response to the potential approval of spot bitcoin ETFs. The conversion of their bitcoin futures ETF into a strategy that encompasses both ETH and bitcoin reflects their proactive approach to align with market trends and investor demand.
