Rob Nelson on What to Expect with Bitcoin ETFs

The topic of bitcoin ETFs is getting a lot stronger now that companies like BlackRock have submitted applications. Not long ago, Rob Nelson – the anchor of Roundtable – and Jordan Fried, the CEO of Immutable Holdings, held a discussion regarding how strong bitcoin ETFs will be in the coming future and what traders and investors can potentially look forward to.

Rob Nelson on Bitcoin ETFs

Nelson opened the conversation up by stating:

Everybody knows that the bitcoin ETFs are going to lead to a whole lot more on-ramping of crypto and assuming they get approved, it’s a big deal. Major financial players like BlackRock, Fidelity, and Charles Schwab stepping into this space is meaningful, but maybe we’re not seeing everything.

Responding, Jordan Fried said:

One thing most people aren’t highlighting is that there’s only 21 million bitcoins. While this number carries a lot of significance, many don’t realize that 900 new bitcoins are created daily. With the cap set at 21 million and nearly 19 million or more currently in circulation, the daily inflation rate of bitcoin is around 900 bitcoins.

He went on to say that the bitcoin halving scheduled for next year is also going to potentially aid the crypto space in ways nobody sees coming. In the past, halving events have always led to bitcoin experiencing solid price jumps, and he doesn’t think 2024 will be an exception to the rule. He stated:

Th[e] 900 daily bitcoins will drop to 450 bitcoin per day this coming spring, setting us up for the supply crunch everyone is hoping for.

He then continued to express his thoughts regarding bitcoin ETFs and said:

A good bitcoin ETF from a trusted regulated entity like BlackRock or Fidelity could lead to billions in new buying demand. When you consider the 900 bitcoins created daily, you can see how this would put upward pressure on the price.

To this, Nelson asked:

If the ETFs do lead to 30 million more in buying power, this would push the price of bitcoin up?

Jordan responded with:

Not only will it push the price of bitcoin up, but it also makes bitcoin more accessible. Everyone with a 401K, an IRA, or retirement account in America practically can’t touch bitcoin now, but a spot bitcoin ETF in America, especially one backed by a powerhouse like BlackRock, is a regulated, trusted entity. Most financial advisors could then recommend it to their clients, granting more retirement accounts exposure to it.

Why Have There Been So Many “Nos?”

Bitcoin ETFs have been pursued for some time. There’s been a longstanding argument that they would make the industry far more legitimate and mainstream.

The problem is that the SEC has constantly viewed crypto as an unregulated arena. Thus, applications have often been cut down.