Mark Yusko, the founder of Morgan Creek Capital, recently showed confidence in the eventual approval of the Spot Bitcoin ETF and described the recent run of green bitcoin candles as unconventional. He commented on the past week’s surprising upward trajectory, sparked by CoinTelegraph’s false news, stating that it “started off in a funny way.”
Notably, the recent positive trend started with a misleading post on social media platform X, falsely announcing the approval of a Spot Bitcoin ETF by the United States Securities and Exchange Commission (SEC). This deceptive post caused a stir within the community, which, according to Yusko, was definitely “not a good look” for the media.
However, what followed was even more intriguing. Despite the initial confusion and the subsequent correction of the false news, bitcoin embarked on an upward trajectory. It exhibited renewed buying interest, breaking through the psychologically major $30,000 barrier and continuing its ascent.
Mark Yusko on the Bitcoin ETF Excitement
In an episode of the “On the Margin” podcast, Yusko emphasized that while the news about the ETF approval was indeed false, the market’s reaction to it was authentic. He noted that this volatile market behavior, along with the ongoing climb, suggests that the approval of a Bitcoin ETF has not been fully factored into the current prices.
He expressed confidence in the eventual approval of a Spot Bitcoin ETF, anticipating a surge in demand when that happens. Morgan Creek Capital’s founder stated:
“When this is approved, there’s going to be increased demand. It’s not ‘if.’ It’s ‘when’… and prices are going to rise.”
Bitcoin vs. Traditional Markets
Interestingly, this surge in bitcoin prices continued even after the initial spike caused by the false announcement, demonstrating major resilience and an upward trend. This market behavior highlights a significant difference between traditional finance and the world of Bitcoin.
In traditional finance, when a major event is expected, it is often already factored into asset prices. In contrast, bitcoin’s price tends to respond more dramatically to news and events, and things that may seem “priced in” elsewhere may not be in the bitcoin space.
Yusko also cited insights from Bloomberg analyst Eric Balchunas, who estimated that around $30 trillion worth of assets are currently restricted from investing in Bitcoin. He anticipates that once a financial giant like BlackRock offers a Bitcoin ETF, it will open the door for more significant investments in the digital asset world.
According to Yusko, even a modest allocation of 1% to Bitcoin could translate to hundreds of billions of dollars flowing into the asset, indicating that this potential influx of capital is not yet “priced in.”