Bitcoin has done well on its own over the years, reaching an all-time high of over $60,000 in 2021. However, Fundstrat co-founder Tom Lee says the top crypto asset can shoot to $180,000 with a Bitcoin exchange traded fund (ETF) approval.
Lee gave the prediction during an interview on CNBC. “If the spot Bitcoin (ETF) gets approved, I think the demand will be greater than the daily supply of bitcoin,” he said, explaining:
“So the clearing price — this is done by our crypto digital strategist — is over $150,000. It could even be like $180,000,” he added.
A Bitcoin ETF is one that comprises Bitcoin, and other assets related to its price. Such ETFs are traded on traditional exchanges rather than crypto exchanges, making it more mainstream.
The crypto industry has been waiting for a Bitcoin ETF approval for many years, and although there are institutional investors already in the industry, an ETF is expected to attract many more and boost investor confidence in the asset, thus bringing more investment into it.
While there are several Bitcoin ETFs in other countries, Lee says that the price projection will only be valid if the ETF is approved in the U.S., where strict regulation has hindered the approval for years.
Pursuit of Bitcoin ETF
Several crypto companies have sought permission to start a Bitcoin ETF for many years. However, the U.S. securities and exchange commission (SEC) has refused to approve any of the applications, citing market manipulation concerns.
The industry however did not relent, with some of the companies like Bitwise and VanEck having applied many times.
In 2023, many more companies have come in with applications such as BlackRock, Ark Invest etc., but the SEC has also been skeptical.
This time though, more progress has been made, as the SEC demanded certain changes be made, such as having a surveillance-sharing partner.
BlackRock and other applicants have complied and refiled the applications, naming Coinbase as their surveillance-sharing partner.
Hope of an ETF Heightens
With the adjustments done in the applications, the crypto industry is hopeful that the SEC will this time grant approval for at least one of the applicants to start a Bitcoin ETF. No application has come this far in the past, which is why the industry is so hopeful.
However, a former staff of the SEC has hinted that approval for an ETF is unlikely with Gary Gensler as head of the SEC and under the Biden administration.
If approved, an ETF will be a major milestone in Bitcoin’s journey, and lots of great things are expected to happen, including Lee’s $180,000 price prediction.
