The recent approval of Bitcoin exchange-traded funds (ETFs) is expected to result in a greater influx of capital directly into Bitcoin compared to the flow into the ETFs, according to Cory Klippsten, the CEO of Swan Bitcoin. He has termed this phenomenon “The ETF multiplier effect.”
Klippsten explained during an exclusive interview with Cointelegraph that the existence of ETFs and the endorsement of large financial firms entering the space and validating it in the eyes of investors will lead to a significant increase in Bitcoin purchases through other sellers worldwide.
Despite the Grayscale Bitcoin Trust (GBTC) experiencing capital outflows that have put downward pressure on the price of Bitcoin, Klippsten remains highly optimistic about its long-term prospects.
Klippsten believes that there is a strong likelihood of an Ethereum ETF being approved in the near future in the United States, mainly due to the influence of Consenys and the Ethereum Foundation over U.S. regulators.
While the approval of an ETF may grant Ethereum a sense of legitimacy, Klippsten asserts that the second largest cryptocurrency will still be perceived as centralized, unlike Bitcoin.
“At best, it will trade like a tech stock,” he said.
To learn more about Klippsten’s perspective on Bitcoin following the approval of ETFs, watch the complete interview on our YouTube channel and remember to subscribe.