A Coinbase executive says one factor is playing a major role in institutional investors buying up Bitcoin (BTC).
In a new interview with CNBC, Coinbase Head of Institutional Strategy John D’Agostino names four potential reasons why he sees BTC exchange-traded funds (ETFs) on the rise.
“We talked about the three reasons why [BTC ETFs are exploding]: [it’s] no longer trading as a tech bundle, inflation hedge, and this sort of ‘catch up to gold’ type trade. Now, with this sort of onslaught of ETF flows, we have the fourth characteristic, which is just scarcity.
Bitcoin miners cannot produce Bitcoin as fast as this overwhelming demand. So I don’t think it’s appropriate to view it as a tech stock in the tech bundle. Whether you view it as a commodity like gold is somewhat subjective. I like to look at it that way. Some others don’t, but I think it’s a good framework to think about, specifically relative to the gold trade.”
Beyond that, D’Agostino argues there is another important aspect that many people might be overlooking.
“The one important thing to remember about these ETF inflows – and not just the surge we’ve seen recently, but since the beginning, because it’s been an absolutely phenomenally performing ETF — And this is a very important point that’s overlooked: This is being done With the asset managers not allowing their salespeople, their financial advisors to recommend it. So that’s extraordinary.
That’s like a shoe salesman not being able to recommend Nike. So that’s going to change at some point. And I’ll sort of leave it to your viewers to determine what happens when that thundering herd of brokers can actually pick up the phone and recommend this ETF.”
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Marciano Graphic/Fotomay
