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Mechanism Capital Lianchuang: The market agrees that ETFs are correct to be bullish on BTC in the long term

Mechanism Capital Lianchuang: The market agrees that ETFs are correct to be bullish on BTC in the long term

Cointime2024/01/02 03:30
By: Cointime
BTC-0.20%XOLDTOKEN0.00%

Andrew Kang, co-founder and partner of cryptocurrency venture capital firm Mechanism Capital, stated on social media platform X that he still feels that Bitcoin priced at $45,000 is undervalued in terms of the potential inflow of ETFs and BTC halving in 2024. The market generally believes that Bitcoin will benefit from long-term ETF inflows, which is correct. However, the early load of ETF fund inflows has not received sufficient attention. The asset management scale of gold ETF is $120 billion, with an average expense ratio of 0.6%. This is equivalent to an annual cost of $720 million. The net present value of these costs is approximately $10-20 billion. Therefore, since the launch of ETFs, the ETF issuers will strive for future fees of $10-20 billion, of which every marketing fee in 2024 is 10 times more important than that in 2025 because once customers choose an ETF, they are unlikely to switch easily. For asset management companies, customer value will increase over time, which means that it is important to win over every customer.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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