Tom Lee, co-founder of research firm Fundstrat Global Advisors, has expressed his belief that the approval of a Spot Bitcoin Exchange-Traded Fund (ETF) could significantly impact the price of Bitcoin.
In a Wednesday interview with CNBC, Lee suggested that if a Spot Bitcoin ETF were to be approved within the next year, the price of Bitcoin could potentially surge to as high as $180,000. And while the analyst did not provide an exact timeline for the approval, he further noted that the demand for Bitcoin through an ETF could surpass its daily supply, causing the price to experience a substantial increase.
“If the spot — bitcoin gets approved, I think the demand will be greater than the daily supply of bitcoin and so the clearing price- this is done by Shawn Farrell, our crypto digital strategist- is over 150,000, could be like 180,000.” Said Lee.
In April, the pundit predicted that Bitcoin’s price trajectory could witness a remarkable surge, potentially reaching $180,000 before the anticipated halving event in April 2024, partially attributed to the potential introduction of a BlackRock spot ETF.
When asked about his specific price targets for Bitcoin, Lee, however, acknowledged that his forecasts tend to be bold. He clarified that his estimates are influenced by regulatory clarity and developments in the cryptocurrency space. The pundit further highlighted the regulatory status of Bitcoin and Ethereum, arguing that it was relatively straightforward compared to other cryptocurrencies, making them more navigable investment options.
Lee’s prediction comes amid ongoing discussions and anticipation surrounding the approval of a Bitcoin ETF in the United States. An ETF would provide institutional and retail investors with a more accessible way to invest in Bitcoin without directly holding the cryptocurrency. This potential for increased accessibility has fueled speculation about how such approval could impact the cryptocurrency’s price.
The discussion surrounding a potential spot Bitcoin ETF in the US remains ongoing, reflecting diverse viewpoints on its potential green light. Recently, Anthony Scaramucci, the founder of SkyBridge Capital, chimed in on the discussion by advocating for the approval of a spot Bitcoin ETF.
“We SkyBridge believe the time is long overdue for a spot Bitcoin ETF,” Scaramucci’s firm wrote in an August 14 letter to the Securities and Exchange Commission (SEC). In the letter, the firm contended that executed surveillance-sharing agreements with Coinbase have effectively tackled concerns related to market manipulation.
Despite escalating interest and endorsements, the SEC has persistently denied multiple Bitcoin ETF proposals, citing worries regarding market manipulation and the protection of investors.