Expert Insights: Stablecoins Set To Eclipse ETFs, Marking a Trillion-Dollar Shift

Gabor Gurbacs, a consultant for the leading stablecoin issuer Tether, has contended that stablecoins possess the potential to wield transformative influence in financial markets. He draws parallels between their future trajectory and the rapid expansion witnessed by investment instruments such as exchange-traded funds (ETFs).

In a communication released on X, Gurbacs argued that stablecoins exhibit essential characteristics to catalyze the emergence of the next market valued in trillions of dollars. He initially emphasized the historical development of investment vehicles, advancing from stocks to hedge funds, mutual funds, and ETFs.

He stated that each played a role in establishing markets worth trillions of dollars. Gurbacs firmly believes that stablecoins will emerge as the next major milestone in this trajectory.

To bolster his assertion, he delineated various characteristics that validate the potential of stablecoins to drive the development of the upcoming multi-trillion-dollar markets. Specifically, the Tether advisor drew comparisons between the distinctive features of stablecoins and those of stocks, hedge funds, mutual funds, and ETFs. Emphasizing that the traditional quartet of investment vehicles exhibits lower disruptive potential when contrasted with stablecoins.

Stablecoins’ Rise: Gurbacs Predicts ETFs Transformation

Additionally, Gurbacs highlighted the suitability of stablecoins for commerce and payment—a domain in which all four conventional investments lack adequacy. He further emphasized that stablecoins boast low network fees in contrast to the elevated management fees associated with other alternatives. Moreover, he underscored the convenience of accessibility, noting that stablecoins only necessitate digital wallets.

Moreover, Gurbacs pondered the transformation of Tether’s USDT stablecoin. In 2017, he highlighted that the market capitalization of USDT was relatively small, being below $100 million. During that period, he had notified Wall Street about the potential of Tether, envisioning it could attain a significant market cap of $100 billion.

Tether is close to reaching its milestone after five years. The Tether advisor said the company’s reserves are nearing $100 billion. Gurbacs thinks stablecoins will go through a big change in the next five years.

Related Reading |

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

Comments (No)

Leave a Reply