Gabor Gurbacs Sees Leverage Potential in Bitcoin ETFs, Fueling Institutional Adoption

Bitcoin ETF and chart

Bitcoin ETFs allow holders to use Bitcoin as a collateral and gain access to credit and leverage in the traditional markets. The few billion dollars of liquidity that’s coming in today will be nothing compared to what’s coming when more institutions begin to understand this.

Bitcoin ETF as a Collateral for Credit in Traditional Markets

Gabor Gurbacs, a prominent crypto investor and advisor at VanEck and Tether, emphasizes the potential of Bitcoin ETFs to unlock leverage and credit access for institutional investors, fueling further adoption. In an X post on Tuesday, Gurbacs wrote:

“Bitcoin ETFs allow holders to use Bitcoin as a collateral and gain access to credit and leverage in the traditional markets. The few billion dollars of liquidity that’s coming in today will be nothing compared to what’s coming when more institutions begin to understand this.”

An Acceleration

Meanwhile, according to BitMex Research, the recent growth of Bitcoin exchange-traded funds (ETFs) has accelerated dramatically, with net cumulative inflows doubling in the past three days to over $3 billion. This rapid adoption outpaces even gold ETFs, where the popular $GLD fund took nearly two years to reach a similar level of inflows. This was confirmed by Eric Balchunas, the senior ETF analyst at Bloomberg.

Bitmex Research chart of spot Bitcoin ETF cumilative flow

Spot Bitcoin ETFs have so far shown remarkable successes in terms of widespread market acceptance. This has motivated the drive for Ethereum ETF approval being pushed by prospective issuers. There currently is the broader trend of asset managers like Franklin Templeton seeking Ethereum ETFs, highlighting an institutional awakening to cryptocurrency potential. Navigating regulatory hurdles and addressing concerns remain challenges, but Gurbacs suggests significant upside.

Author: Jinka

Jinka is a self-trained crypto journalist, passionate about happenings in the industry.