An analyst at Fundstrat Global Advisors says that a new Bitcoin (BTC) exchange-traded fund (ETF) could bring in as much as $50 billion in its first year and further drive up the price of the benchmark cryptocurrency.
According to Fundstrat Global Advisors co-founder Tom Lee, demand for the ProShares exchange-traded fund could deliver higher first-year inflows than the Invesco QQQ Trust Series 1 fund. Invesco QQQ ETF brought in $36 billion when it started tracking the Nasdaq 100, but Fundstrat predicts that the ProShares Bitcoin ETF will exceed that amount.
Fundstrat earlier set the year-end price target of Bitcoin at $100,0000, but the research firm now says that BTC could reach as high as $168,000 if the new Bitcoin ETF gets serious inflow from investors.
Lee notes that the equilibrium price of $168,000 factors in only the anticipated additional demand for about $50 million worth of BTC per day and the current price of the crypto asset.
“There are some views that the run-up in [Bitcoin’s price] is already discounting this approval.
To an extent, this is probably true, since Bitcoin has surged to near all-time highs in the past few weeks. But in our view, the price of Bitcoin will continue to rise, well after actual approval of the ETF.”
Bitcoin hit a new all-time high this week, breaching over $67,000 at one point.
In an interview with CNBC, Lee explains why he is confident that the price of Bitcoin will continue to surge.
“I think Bitcoin is still really strengthening. The narrative around both store value and protection against inflation and also against state censorship. Those are really the three things that have attracted people to owning something like Bitcoin.
And because it’s a network value asset and its value grows exponentially… Yes, I think a hundred thousand is possible for before the year ends.”
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