A Coinbase executive believes a key factor is driving the surge in institutional Bitcoin (BTC) investment: scarcity.
Four Reasons for the Bitcoin ETF Explosion
John D’Agostino, Coinbase’s Head of Institutional Strategy, recently spoke to CNBC, outlining four reasons behind the rising popularity of Bitcoin ETFs:
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Bitcoin is no longer solely viewed as a tech stock. It’s moving beyond its early association with the tech sector.
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Bitcoin as an inflation hedge. Investors see it as a potential safeguard against inflation.
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Bitcoin catching up to gold. Some see Bitcoin as a competitor to gold as a store of value.
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Scarcity. The limited supply of Bitcoin can’t keep up with the massive demand, further driving up prices. Miners simply can’t produce Bitcoin fast enough.
D’Agostino highlighted the scarcity aspect as a crucial, often overlooked driver of the current market trends.
The Overlooked Factor: Restricted Sales
D’Agostino pointed out another significant factor: asset managers are currently not
allowing their sales teams to actively promote Bitcoin ETFs. He compared this to a shoe salesman being forbidden from recommending Nike shoes—a highly unusual situation. He speculates that once this restriction is lifted, the market could see an even more dramatic increase in demand.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your research before investing in cryptocurrencies./p>