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- Analyst predicts Bitcoin ETF approval could attract $570 billion from registered investment advisors.
- 88% of advisors were reportedly waiting for a spot ETF to offer Bitcoin exposure to clients, according to Melker.
- Investment adviser Rick Ferri counters Melker’s projections, calling them “overblown.”
Bitcoin and cryptocurrency advocate Scott Melker recently suggested that if only 0.5% of the total assets managed by registered investment advisors (RIAs) were invested in a Bitcoin ETF, it would equate to $570 billion.
Melker highlighted that RIAs collectively oversee $114 trillion in assets, underscoring that Bitcoin’s total market capitalization currently stands at $860 billion.
Moreover, the crypto analyst claimed that 88% of RIAs said they were waiting for a spot ETF to offer any exposure to clients to Bitcoin. However, investment adviser Rick Ferri contested Melker’s expectations, deeming them “overblown.”
Ferri, drawing on his 35 years of advisory experience, questioned the belief that advisers would rush to embrace a Bitcoin ETF once offered by Wall Street. He argued, “If an adviser really wanted BTC, they would already own it through GBTC.”
Melker’s remarks were prompted by Bruce Fenton, a prominent investor, who shared that a Bitcoin ETF could significantly alter the financial market landscape. Fenton noted the existence of numerous brokers, financial advisers, and RIAs not currently involved in or well-versed in Bitcoin, predicting a radical shift soon.
Fenton stated that financial advisors need to “keep up with what customers and the public are talking about,” noting that Bitcoin should belong in many more portfolios based on its performance and correlation with markets over the last decade.
Fenton further asserted that major investment firms would invest billions in marketing Bitcoin-based investments to clients. This would involve chief economists discussing it, public education on its necessity, and the creation of “the best ads we’ve ever seen.”Recently, the U.S. Securities and Exchange Commission (SEC) has set a critical deadline for potential issuers, allowing spot Bitcoin ETFs to start trading as soon as January 11.
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