Over $550 billion could flow into crypto market, says analyst

Scott Melker, a crypto analyst, has highlighted a significant influx into Bitcoin following the approval of a BTC Spot Exchange-Traded Fund (ETF).

Melker projected $550 billion in Bitcoin ETF investment in a social media post on X (formerly Twitter), representing only 0.5% of total assets managed by Registered Investment Advisors (RIAs).

Melker stated that RIAs currently manage assets worth $114 trillion, and Bitcoin’s total market capitalization is $860 billion.

According to the post, if even half of RIA-managed assets were to flow into a Bitcoin ETF, the total amount could be around $570 billion.

Some cryptocurrency analysts, including Bloomberg Intelligence’s Eric Balchunas, are skeptical of Melker’s projections.

Balchunas questioned the $114 trillion figure for RIA-managed assets, saying it was “really high” and total advisor assets were closer to $30 trillion.

Melker defended his claims by sharing a Thinkadvisor data screenshot showing that 15,114 fiduciary investment advisors manage $114 trillion in assets for 61.9 million clients.

Rick Ferri, an investment advisor, also questioned Melker’s predictions, claiming that they were exaggerated. He emphasized that he couldn’t understand why Melker would make such claims in his 35 years of advisory experience.

Ferri speculated that if any adviser chose to own BTC, it was most likely through Grayscale Bitcoin (BTC).

Melker’s post was in response to Bruce Fenton’s discussion about how the Bitcoin Spot ETF could be a game changer in the cryptocurrency industry.

Many brokers, financial advisors, and RIAs, according to Fenton, are unaware of BTC, and he stressed the importance of staying informed about what the public and customers are talking about.

Given its performance and correlation over the last decade, Fenton believes Bitcoin should be included in many portfolios.