Bitcoin Could Be In For A 70% Plunge, Says Fund Manager, After Apex Crypto Fails To Take Off On Spot ETF Launch: 'We Have Seen This Move Before'
Portfolio Pulse from Shanthi Rexaline
Gary Black, Managing Partner at Future Fund, predicts a potential 70% plunge in Bitcoin's value following a lackluster response to the launch of 11 new spot Bitcoin ETFs. Despite approval, these ETFs saw modest inflows, contrasting with the outflows from the Grayscale Bitcoin Trust (GBTC), which has higher fees. Black references a historical drop in Bitcoin's price post-2020-2021 gains as a basis for his prediction. Meanwhile, Bitcoin bulls like Cathie Wood remain optimistic, with Wood predicting a value of $1.5 million by 2030. Bitcoin was slightly up at $41,855.37 at the time of reporting.
January 21, 2024 | 3:46 pm
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NEGATIVE IMPACT
Grayscale Bitcoin Trust (GBTC) experienced $2.3 billion in net outflows, contrasting with the modest inflows into new spot Bitcoin ETFs. GBTC's higher fees compared to new ETFs may impact its attractiveness to investors.
The outflows from GBTC and the competition from new spot Bitcoin ETFs with lower fees suggest a negative short-term impact on GBTC's price as investors may prefer the cheaper alternatives.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90