Morgan Stanley Executive Chair ā James Gorman has called Bitcoin a speculative asset. Yet he believes it isnāt a fad and is not going away.
Itās been 15 years since the first Bitcoin block was mined. However, the flagship crypto asset has now gained increased attention from traditional finance players due to the applications of spot Bitcoin exchange-traded funds (ETFs).
SponsoredāI Never Understood Bitcoin as a Store of Valueā ā Morgan Stanley Chair
James Gorman, who is one of the most popular figures in the world of finance, says that he does not understand how Bitcoin is a store of value.
āI joked once, I wish I bought it at $60 and I am glad I didnāt buy it at $60,000. Its clearly speculative,ā Gorman told Bloomberg.
Despite that, Gorman believes that Bitcoin is not going away.
āBitcoin is not going away. Itās not a fad. I just donāt think itās a core investment. I think itās a a speculative asset of which there are plenty of choices,ā Gorman added.
Read more: Simplifying the Bitcoin Whitepaper: A Comprehensive Guide
Will Spot Bitcoin ETF Bring a Secular Demand?
According to Gorman, Bitcoin should play a very small role in wealthy peopleās financial fabric due to its volatile nature. However, other experts are inclined to believe that a spot Bitcoin ETF will generate significant demand from institutional and high-net-worth investors.
Hassan Ahmed, the Country Director for Singapore at Coinbase, told CNBC:
āThis spot Bitcoin ETF (exchange-traded fund) for the US markets is really as foundational and as big a deal as people are making it out to be. Itās a structural market change for this asset class thatās coming into its being.Ā
The noise and chatter around this approval are certainly intensifying, and weāll see how things play out. But the way we see it is that thereās going to be secular demand and fund flows that are going to be coming into this asset class and this asset in particular, Ahmed added.
Also, the Chicago Board Options Exchange (CBOE) Digital President John Palmer believes that more funds will flow in after the approval of the spot Bitcoin ETF.
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
āI think the spot ETF approval is really bullish for the overall sentiment of the market.
And I think seeing that approval really is going to pave the way for pension funds and Article RIA-based funds to be able to invest assets in a spot Bitcoin ETF where they may not be able to gain that access today and just a native spot Bitcoin token, Palmer stated.
Similarly, on December 26, 2023, BeInCrypto reported how a spot Bitcoin ETF approval could give easy Bitcoin exposure to retirement savers.
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For BeInCryptoās latest Bitcoin (BTC) analysis, click here.