Eric Yakes, founder of Bitcoin-focused investment firm Epoch Ventures and author of Bitcoin and the Monetary Revolution, has argued that investors are still not bullish enough on Bitcoin. Speaking on a podcast, Yakes said he places little weight on technical analysis patterns or predictions based on past cycles. Instead, he believes the key factor for Bitcoin over the next 5 to 10 years will be the emergence of new demand sources.
Yakes pointed to the launch of spot Bitcoin ETFs by BlackRock as a major milestone in institutional acceptance. He said a large financial institution like BlackRock offering Bitcoin to investors not only brings direct capital inflows but also builds trust among other institutional investors.
A central part of Yakes's thesis is Bitcoin's market capitalization and liquidity. He argued that a rise from roughly $2 trillion to $5 trillion could significantly change the way major sovereign wealth funds approach Bitcoin. Using Saudi Arabia as a hypothetical example, he said a larger Bitcoin market would make it much more realistic to exit a $100 billion position if needed. If the market cap reached $10 trillion, Bitcoin could become a more attractive reserve asset for governments.
Yakes warned that government accumulation may not begin with a headline. 'This situation could trigger a massive surge in Bitcoin,' he said. 'There could be a surge that nobody understands what's happening.' Behind such a move, he suggested, could be governments quietly accumulating Bitcoin over time.
He also sees traditional banking as another potential demand driver. Bitcoin-backed loans yielding around 11 percent annual interest could be appealing for banks. In his example, if such loans reached 20 percent of a bank's loan portfolio, they could increase the bank's net interest margin by approximately 50 percent. Although volatility has made banks cautious, Yakes believes a maturing market could change that perception.
Spot Bitcoin ETFs will remain critical over the next five years, according to Yakes. Longer term, he expects Bitcoin to be used not only as an investment vehicle but also as savings and collateral in the digital economy. He outlined three phases of monetary adoption: store of value, medium of exchange, and unit of account, while cautioning that the process could take decades. He also acknowledged that a future technology superior to Bitcoin could pose a major risk.
