If there’s one thing people are underestimating about a Bitcoin spot ETF approval, it’s the reality of Wall Street’s marketing engine.
At least that was the takeaway from capital allocator Anthony Scaramucci’s most recent visit to crypto industry podcast “The Scoop.”
In the interview, Scaramucci talked at length about how a Bitcoin ETF is poised to reshape the investing landscape. In particular, the founder of SkyBridge Capital, declared that an ETF “approved by the federal government” would unleash a salesforce tsunami, channeling billions into the cryptocurrency.
Scaramucci, a Wall Street veteran, underscored the strategic shift, stating, “There’s this unspoken not-so-secret reality of Wall Street: products are sold, not bought.”
In his vision, the traditional sellers of ETFs would become evangelists for Bitcoin, promoting the cryptocurrency to a much broader audience.
He painted a vivid picture of the sales pitch, envisioning those typically offering coffee and donuts during ETF presentations now advocating for Bitcoin ETFs. “Put 1% into Bitcoin,” they would say, armed with the narrative that Bitcoin has been the best-performing asset of the past decade.
“The target audience for Bitcoin in an ETF is tens of thousands of people,” Scaramucci asserted. By enabling investments ranging from $500 to “an infinite amount,” the ETF would attract a diverse cross-section seeking advice from traditional brokers, including those using platforms like E-Trade and Fidelity.
Highlighting the underappreciated power of Wall Street’s marketing machinery, Scaramucci contended that the cash ETF approval was not fully priced in. Further, he emphasized that while individual investors might already dabble in Bitcoin personally, the monumental shift would come when money managers, responsible for managing billions strategically allocate 1% of their portfolios to Bitcoin.
As he broke down the numbers, Scaramucci cited the potential involvement of giants like Fidelity and BlackRock, suggesting that a mere 1% allocation from these two behemoths could funnel over $110 billion into Bitcoin.
As of today, 13 Bitcoin spot ETFs are vying for approval, with industry analysts expecting a 90% chance one will go live by January 2024.