Anthony Pompliano has outlined several predictions related to the highly anticipated approval of the Bitcoin spot ETF. As the ETF approval looms, Pompliano foresees significant developments in the crypto market.
In his first prediction, Pompliano anticipates the approval of the Bitcoin spot ETF on a Wednesday, followed by the commencement of trading on Thursday. He stresses the importance of a quick turnaround, contrary to historical concerns about delays between approval and trading.
The second prediction revolves around the expected inflows into the approved ETF. Pompliano suggests that the ETF could attract a substantial $2 billion in assets under management (AUM) within the first 48 hours. This projection surpasses the initial inflows of the Futures-based Bitcoin ETF, making it a noteworthy event in the financial market.
Looking ahead to the first 30 days post-approval, Pompliano envisions the AUM to grow to $5 billion. This rapid growth, he notes, would represent approximately 5% of the gold market, underlining the potential scale of adoption within the initial month.
Pompliano singles out BlackRock as a potential winner, surpassing even Grayscale in assets. He also delves into the marketing aspect, predicting a substantial marketing spend of at least $100 million within the first year by various spot ETF issuers. He highlights the restrictions on advertising the ETF directly, leading to a broad and diverse marketing approach across different channels.
Pompliano predicts that at least one sovereign wealth fund will announce its investment in the Bitcoin spot ETF within the first 12 months.
As interest in the Bitcoin spot ETF intensifies, Pompliano expects speculation around an Ethereum spot ETF to grow, especially towards the end of the first quarter. This speculation mirrors the trajectory seen with Bitcoin and sets the stage for potential developments in the Ethereum market.
Addressing the issue of Bitcoin’s volatility, Pompliano presents a somewhat contrarian view. He suggests that over the next three years, Bitcoin’s volatility will significantly reduce. In his final prediction, Pompliano forecasts a reduction in Bitcoin’s compound annual growth rate (CAGR) to 20% within the next five years..
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