Morgan Creek CEO predicts the growth of crypto market capitalization to $6 trillion

Mark Yusko expects that $300 billion will be invested in spot bitcoin funds

26.04.2024 - 11:40

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3 min

The material is not an investment recommendation and is published for informational purposes only.

What’s new? Mark Yusko, the head of venture capital firm Morgan Creek Capital, has said the launch of spot bitcoin exchange-traded funds (ETFs) in the United States has attracted increased interest from regulated investment advisers and significantly altered demand patterns, and the impact of these factors “has yet to be realized.”

Interview with Yusko

What else is known? Yusko believes $300 billion will flow into the bitcoin market over the course of the year, most of it from baby boomers. He believes investors born between 1946 and 1964 are beginning to learn information about the cryptocurrency market and will become more actively invested in it through retirement accounts managed by advisors. In 2022, assets under management of the latter were valued at $114,1 trillion, according to the industry association.

Trading in shares of spot BTC ETFs began in the United States on January 11 this year. Several products from such investment companies as BlackRock, Fidelity, Bitwise, ARK Invest, VanEck, Franklin Templeton, and others were admitted to the market at once. Since then, they have amassed over $53 billion worth of bitcoins under management.

Grayscale will offer a spot BTC ETF with the lowest management fee

At 1,5%, Grayscale’s GBTC fees are currently the highest in the bitcoin fund segment

According to Yusko’s prediction, since the bitcoin funds were launched, only about 15% of the amount that registered investment advisers, who “control all the boomers’ cash,” can bring in. He believes the $300 billion influx could push the crypto market’s capitalization to $6 trillion. At the time of writing, it stands at $2,48 trillion.

Earlier, analysts at the Santiment platform reported that large holders of bitcoin continue to accumulate the asset, while smaller holders are showing FOMO in anticipation of a rate hike to $70 000. The current BTC rate on Binance is $64 193 (+0,76% overnight).

Experts of the CoinGecko aggregator estimated that in the first quarter, the capitalization of the crypto market increased by 65%.

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