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- 1 The exchange-traded funds (ETFs) are gradually gaining more traction in the crypto landscape.
- 2 Managing partner of Fundstrat Tom Lee believes in a dynamic shift in Bitcoin post-approval of Bitcoin Spot ETFs.
- 3 Several traditional financial firms have submitted applications to SEC for Bitcoin ETF approval.
The exchange-traded funds (ETFs) remained a crucial investment vehicle in the traditional financial system. With the popularity and wide adoption of cryptocurrencies, ETFs spread within the burgeoning class. Recently, a Bitcoin spot ETF spree took place with major players filing for the offering. Many analysts and experts think the product would make a significant jump in BTC price.
Following a similar line, New York-based financial institution Fundstrat stated that the biggest cryptocurrency could see its price trading up to $150,000 by the end of next year. The reason behind the highly anticipated price target is the expectation that the spot Bitcoin ETFs would get approval from the financial regulator in the United States.
Managing partner and head of research at Fundstrat, Tom Lee said in an interview that the supply and demand dynamics of Bitcoin would see a transition following the spot ETFs approval. This would result in a soaring BTC price.
According to Lee, the demand for Bitcoin would surpass the supply and it will make the price go over $150,000 to even $180,000.
Lee explained that this scenario might hold true, granted it’s a Bitcoin ETF approved by the United States, similar to the spot ETFs already present in Europe. Nonetheless, Lee anticipates a significant price increase from Bitcoin’s upcoming halving event in April 2024, even if the applications for spot ETFs are declined.
TradFi Players Filing for Bitcoin Spot ETF
In June this year, prominent traditional financial firms such as Fidelity, Invesco, Wisdom Tree, and Valkyrie, joined the ranks of Wall Street, following the lead of the world’s biggest asset manager, BlackRock, by submitting applications to the SEC for a Bitcoin spot ETF.
With BlackRock’s venture into the Bitcoin ETF space, the broader crypto community is optimistic given the track record of the asset management firm in the past. Additionally, the humongous size of the company ensures a sheer benefit to BTC price once it would start offering crypto exposure to its customers.
Nevertheless, a few of these companies might have to wait until sometime in 2024 to know the result as the SEC has a maximum of 240 days to reach a final verdict on an application after starting the review process.
On the other hand, the decision regarding Grayscale’s appeal to transform its GBTC trust product into a Bitcoin spot ETF is anticipated to be reached sooner than later.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
