Scott Melker, a cryptocurrency analyst and advocate has pointed out a massive inflow into Bitcoin following the approval of BTC Spot Exchange-Traded Fund (ETF).
The crypto analyst shared his projections with the entire cryptocurrency community on the social media platform X (formerly Twitter). Melker proposed that $570 billion could be invested in a Bitcoin ETF, representing just 0.5% of the overall assets managed by Registered Investment Advisors (RIAs).
In the X post, Melker pointed out that the overall assets managed by RIAs are currently valued at $114 trillion. He also highlighted that the total market capitalization of Bitcoin is currently pegged at $860 billion.
The post read:
RIAs manage $114 TRILLION in assets. If a measly half of a percent of that money eventually comes into a #Bitcoin ETF, that would be roughly 570 billion dollars. The entire market cap of $BTC now is $860 BILLION.
Several crypto analyst seems to disagree with Melker’s projections and have shared their opinions on his claims. One of the analysts who has voiced his opinions toward the prediction is top Bloomberg Intelligence analyst Eric Balchunas.
Eric Balchunas asserted that the RIAs assets valued at $114 trillion “seems really high.” He further added that the total advisor assets are worth around $30 trillion, due to data from market tracker Cerulli.
However, Melker backed up his claims by sharing a data screenshot from Thinkadvisor. Thinkadvisor highlighted that “15,114 fiduciary investment advisors currently manage $114 trillion in assets for 61.9 million clients.”
Another crypto enthusiast who has expressed displeasure with Melker’s inflow prediction is investment advisor Rick Ferri. The advisor challenged Melker noting that his “expectations are overblown.”
Ferri asserted that despite his 35 years of advisory experience, he still doesn’t understand why Melker would make such claims. Additionally, Ferri stressed that if any adviser decides to own BTC, they would have done so through Grayscale Bitcoin (BTC).
Melker’s post came in response to Bruce Fenton’s post on how the Bitcoin Spot ETF could be a game-changer for crypto. Fenton predicted a dramatic change in the future while highlighting that several brokers, financial advisors, and RIAs are not knowledgeable about BTC.
According to the crypto investor, financial advisors must “keep up with what the public and customers are talking about.” Additionally, he noted that Bitcoin ought to be included in many portfolios, given its past 10 years of performance and correlation.
He also added that “financial advisors will follow the money and the trends.” Fenton asserted that advisors are not stupid about money and they will be motivated to learn.
Fenton went further to say that large investment firms would spend billions promoting to their clients Bitcoin-based investments. This would lead to chief economists talking about it, public awareness of its importance, and the creation of the best ads.
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