In a recent interview on “The Scoop” crypto industry podcast, Anthony Scaramucci, founder of SkyBridge Capital, shared insights into the transformative impact a federally approved Bitcoin spot ETF could have on Wall Street’s marketing dynamics.
Scaramucci, a seasoned Wall Street veteran, highlighted a key aspect often underestimated: the powerful marketing engine of Wall Street. He asserted that the approval of a Bitcoin ETF by the federal government would trigger a significant shift in investment patterns, with traditional ETF sellers becoming advocates for Bitcoin.
According to Scaramucci, the traditional approach on Wall Street is that “products are sold, not bought.” He envisioned a scenario where those accustomed to pitching traditional financial products during presentations would now be fervently promoting Bitcoin ETFs. Armed with the narrative of Bitcoin being the best-performing asset of the past decade, their pitch would be to allocate 1% of investments into Bitcoin.
Scaramucci emphasized the potential reach of Bitcoin ETFs, targeting tens of thousands of people with investment amounts ranging from $500 to an unlimited sum. This accessibility, he believes, would attract a diverse audience seeking advice from traditional brokers, including those using platforms like E-Trade and Fidelity.
Highlighting the underestimated power of Wall Street’s marketing machinery, Scaramucci argued that the approval of a Bitcoin spot ETF was not fully factored into current market prices. He pointed out that while individual investors might already be involved in Bitcoin, a monumental shift would occur when major money managers strategically allocate 1% of their portfolios to Bitcoin.
Breaking down the potential impact, Scaramucci mentioned industry giants like Fidelity and BlackRock, suggesting that a modest 1% allocation from these entities alone could funnel over $110 billion into Bitcoin. Currently, there are 13 Bitcoin spot ETFs awaiting approval, and analysts predict a 90% chance that one will go live by January 2024.
