Famous economist Alex Krüger, Bitcoin He believes that the price has failed to benefit from the impact of the recently approved spot market BTC ETFs.
In his latest interview on the 1000x Podcast, Alex Krüger details the inner workings of the ETF product and argues that it is still early days for the Bitcoin bull market.
“Why do I think it’s early? Because the corporate sales engine has not yet been fully activated. By some estimates, only 20% has been distributed, and in fact it is planned to be increased substantially, probably by the end of the year.
So, what does this ‘sales engine’ mean?
If we think about how ETFs work, we have buyers, basically retail and discount platforms. We have corporate clients and wealth advisors. Wealth advisors generally fall into two or three groups, the so-called “wirehouses”: Merrill Lynch, UBS, Morgan Stanley and others.
Additionally, there are registered investment advisors (RIAs), they are divided into independent and non-independent. Those who are not independent are consultants Edward Jones and Wells Fargo.
What happens here is that these people are quite slow to start promoting the ETF to their clients. They need to see past performance, they need to reach a certain level of asset management, it takes some time. It needs approval.
In the last two weeks, we’ve seen headlines from Merrill Lynch and UBS. They announce that they will begin offering the ETF to their customers.
But that’s where we’re pretty far away on the brokerage side for this large institutional sales mechanism to fully kick in and get ETFs to people who actually want them.”
