The marketing around the recelty approved spot Bitcoin exchange-traded funds will lead to more capital flowing directly into Bitcoin than that flowing into the ETFs, according to Swan Bitcoin CEO Cory Klippsten. He calls this phenomenon “The ETF multiplier effect.”
“Because of the existence of the ETFs and the credibility of these large financial firms getting into the space and validating it in the eyes of investors […] A lot more Bitcoin will be purchased through all the other sellers around the world,” Klippsten explained during an exclusive Cointelegraph interview.
Despite capital outflows from the Grayscale Bitcoin Trust (GBTC) putting downward pressure on Bitcoin’s price, Klippsten remains extremley bullish in the long term.
Klippsten believes “there is a pretty good likelihood” an Ethereum ETF will be approved soon in the U.S., mainly due to the influence of Consenys and the Ethereum Fondation over U.S. regulators.
While an ETF approval may grant Etheruem a stamp of legitimacy , Klippsten says, the second largest cryptocurrrency will still be regarded as centralized, unlike Bitcoin.
“It will trade like a tech stock at best,” he said.
To find out more on Klippsten’s outlook on Bitcoin following the ETF approval, watch the full interview on our YouTube channel and don’t forget to subscribe.