Fundstrat Global Advisors analyst believes that the launch of an exchange-traded fund for bitcoin futures improves previously announced forecasts for the bitcoin market.
According to Tom Lee, co-founder of Fundstrat Global Advisors, the demand for ETFs on BTC futures from ProShares could provide higher capital inflows in the first year than the Invesco QQQ Trust Series 1. The Invesco QQQ ETF brought $ 36 billion to the market. According to the expert, the exchange-traded fund for Bitcoin of the ProShares company can raise up to $ 50 billion.
Earlier, the analytical company Fundstrat Global Advisors predicted the cost of bitcoin at the end of 2021 at $ 100 thousand. After re-doing its research based on the projected ETF capabilities for Bitcoin futures, the research company says Bitcoin could reach $ 168,000 if the new ETF receives significant influx from investors.
Tom Lee notes that the equilibrium price of $ 168,000 takes into account only the expected additional demand for bitcoin in the amount of about $ 50 million per day and the current price of the cryptocurrency. At the same time, some experts are inclined to believe that the approval by the Securities and Exchange Commission (SEC) of a direct ETF on bitcoin no longer affects the asset price.
This is likely as Bitcoin has surged to new highs over the past few weeks. In an interview with CNBC, Tom Lee stated that Bitcoin’s price will continue to rise after the ETF is approved.
“I think bitcoin is still really getting stronger. Its ability to preserve the value of goods and services in the market during inflation protects the asset from being harassed by regulators. This is really what attracts people to own bitcoin. And because this asset has network value, its value grows exponentially. I think that by the end of the year Bitcoin may well grow to 100 thousand. “
On the very first day, the trading volume with ETFs on Bitcoin futures reached $ 1 billion. On the same day, Bitcoin set a new all-time high of $ 66,990 six months after the previous one. At the same time, experts at JPMorgan Chase Bank believe that Bitcoin’s rise to new all-time highs is due to the fear of rising US dollar inflation, and not the launch of ETFs on Bitcoin futures.
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