Addressing fears that a spot Bitcoin ETF could lessen the volatility of the first cryptocurrency, Yusko stated that this is a natural progression in line with the maturation of the crypto market. He reminisced about the early days of Bitcoin, emphasizing that its evolution from a small pilot project to an established asset class naturally leads to reduced volatility. In Yusko’s view, volatility is an inherent characteristic of Bitcoin.
Yusko reiterated his earlier prediction on the future of Bitcoin. Based on his estimations, the fair value of BTC should currently stand at $50,000, and as the halving approaches, Bitcoin will steadily approach this threshold to ensure miners remain profitable. Following the halving, the fair value of Bitcoin could potentially double, and by 2024, Yusko suggests that the BTC rate could reach six figures. However, he anticipates less dramatic price fluctuations compared to previous cycles.
Regarding the potential approval of a spot ETF for ether, the CEO of Morgan Creek Capital expressed less optimism. Yusko believes that the approval process for an ether ETF could be considerably more complex, citing the US Securities and Exchange Commission’s (SEC) stance that ether is not a security, which may change. Thus, Yusko concluded that the chances of an ether ETF being approved are less than 50%.
Last year, the founder of Morgan Creek Capital predicted that Bitcoin would eventually be adopted worldwide, particularly in countries where national currencies are susceptible to devaluation.