Crypto trader and noted economist Alex Krüger believes that the Bitcoin (CRYPTO: BTC) bull market is just warming up, with the full effects of the recently sanctioned Bitcoin ETFs yet to unfold.
What Happened: In a recent conversation on the 1000x Podcast, Krüger delved into the complexities of an ETF product and why he is of the view that the Bitcoin bull market has a long way to go, The Daily Hodl reported on Monday.
Krüger estimates that the institutional sales process for Bitcoin ETFs is only about 20% functional. He expects a significant acceleration towards the end of the year.
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He elaborated that ETF purchasers comprise retail and discount platforms, institutional investors, and wealth advisors. These advisors are usually split into wirehouses like Merrill Lynch, UBS, and Morgan Stanley, and registered investment advisors (RIAs), which are further divided into independent and non-independent entities.
Krüger pointed out that these advisors are slow to recommend an ETF to their clients, necessitating a proven track record and minimum assets under management (AUM). However, recent news suggests that Merrill Lynch and UBS are gearing up to offer the ETF to their clients, indicating the beginning of a wider institutional push.
“This is just starting. We're very far off on the wirehouse side, for basically the entire institutional sales machinery to be in place and pushing ETFs to the people who actually want it,” he said.
Why It Matters: Bitcoin has been on a roll in 2024, achieving multiple new highs in recent weeks. One of the key drivers of this buying pattern has been the approval of spot Bitcoin exchange-traded funds (ETFs). The ETFs, which started trading on Jan. 10, have attracted a new set of investors, leading to ETF sponsors continuing to purchase Bitcoin to meet the demand.
Bitcoin is currently trading at $67,553, up over 2% in the last 24 hours. The full activation of the institutional sales mechanism could potentially fuel further growth in the Bitcoin market. Benzinga users have also shown interest in Bitcoin ETFs, with 28% stating they’ve already invested in them. This suggests that the Bitcoin ETFs have played a significant role in Bitcoin’s recent surge in value.
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