Scott Melker, a cryptocurrency analyst and advocate, has pointed to a huge influx in Bitcoin following the approval of the BTC Spot Exchange-Traded Fund (ETF).
Bitcoin could be poised for an inflow of $570 million
The crypto analyst shared are projections with the entire cryptocurrency community on the social media platform X (formerly Twitter). Melker suggested that $570 billion could be invested in a Bitcoin ETF, which represents just 0.5% of the total assets managed by Registered Investment Advisors (RIAs).
In the X-post, Melker pointed out that total assets managed by RIAs are currently valued at $114 trillion. He also emphasized that the total Bitcoin market capitalization currently set at $860 billion.
The message read:
RIAs manage $114 trillion in assets. If a measly half percent of that money ends up in a #Bitcoin ETF, that would be roughly $570 billion. The entire market cap of $BTC now stands at $860 BILLION.
Several crypto analysts appear to disagree with Melker’s projections and have shared their thoughts on his claims. One of the analysts who did that expressed his opinion on the forecast is that of top analyst Eric Balchunas of Bloomberg Intelligence.
Eric Balchunas claimed that the RIA’s assets, valued at $114 trillion, “seem very high.” He further added that the total assets of the advisors are worth about $30 trillion, thanks 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 dissatisfaction with Melker’s inflow forecast is investment advisor Rick Ferri. The advisor challenged Melker notes that his “expectations are exaggerated.”
Ferri claimed that despite his 35 years of consulting experience, he still doesn’t understand why Melker would make such claims. Moreover, Ferri emphasized that if an advisor decided to own BTC, he would have done so via the route Grayscale Bitcoin (BTC).
BTC Spot ETF will serve as a game-changer for the crypto market
Melker’s post came in response to Bruce Fenton’s after about 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 have no knowledge of BTC.
According to the crypto investor, financial advisors need to “stay informed about what the public and clients are talking about.” Furthermore, he noted that Bitcoin should be included in many portfolios given its performance and correlation over the past decade.
He added that “financial advisors will follow the money and the trends.” Fenton asserted that advisors are not stupid when it comes to money and that they will be motivated to learn.
Fenton went further to say that major investment firms would spend billions promoting Bitcoin-based investments to their clients. This would lead to chief economists talking about it, the public becoming aware of its importance and creating the best advertisements.
Featured image from iStock, charts from Tradingview.com
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