Michael Saylor believes that BTC ETFs will replace gold ETFs in the near future

The release of several futures-linked Bitcoin exchange-traded funds (ETFs) in the market is attracting tons of U.S. institutional players. The demand for spot BTC ETFs has increased massively in recent days.

Michael Saylor, the Bitcoin supporter and MicroStrategy Chief Executive Officer (CEO), while talking at the Bloomberg Financial Innovation Summit on November 4, said that the BTC ETFs would be the king of the market in the next three years.

Saylor further said that the BTC ETFs would entirely take over Gold ETFs within the next three years. He explained the statements by saying that BTC is becoming the primary asset class for the western world, and it will soon replace the $425 billion fund. He further added:

“To do that, you need the spot ETF. And once these spot ETFs roll, I think you’ll see billions, then tens of billions, then hundreds of billions, then trillions of dollars flow into them.”

Futures-Linked BTC ETFs Are Inferior Offerings

Despite the market already trading two Bitcoin Futures ETFs (ProShares), institutional investors will always prefer spot offerings over them. The MicroStrategy CEO said that future-based BTC ETFs are “inferior” offerings, but they are better than not having anything.

According to Michael Saylor, ETFs are the perfect choice for all institutional investors as these funds are regulated and safer than the extremely volatile cryptocurrencies. Big institutions can participate in Bitcoin investment through these ETFs, as Saylor predicts an influx of billions of dollars in crypto-based exchange-traded funds. 

However, comparing the futures ETFs and spot ETFs, Nic Carter, the co-founder of Coin Metrics pointed out that the former products are inferior as they are not backed by any actual asset but by a contract. According to him, Spot Bitcoin ETFs would be “the hottest commodity ETF launch of all time, attracting probably well over $100 billion in assets within a month or so”.

“They work just great. There’s no explanation for the reticence at the top levels here to approve this product, which obviously should exist and would make life immensely easier for all types of different investors,” said Carter in a statement. 

Recently, in a similar statement, as reported by TheCoinRise, JPMorgan Chase said that investors are shifting to Bitcoin from gold as a result of inflation.