According to an analyst at Fundstrat Global Advisors, a newly-launched Bitcoin ETF could rake in as high as $50 billion in its first year. The analyst goes on to assert that this could further hike the price of BTC.
Fundstrat Global Advisors co-founder Tom Lee believes that demand for ProShares, an ETF, could generate significant first-year inflows. Lee further states that the former’s first-year inflows could outvalue Invesco QQQ Trust Series 1 fund. It should be noted that the latter generated about $36 billion when it first started tracking the Nasdaq 100.
Furthermore, Fundstrat earlier predicted that the year-end price for Bitcoin would be $100,000. However, going by recent developments, the research firm strongly believes it could get as high as $168,000, especially if the new BTC ETFs receive a fairly strong and steady inflow from investors. Lee points out that the $168K-equilibrium price only takes into account anticipated additional demand for $50 billion worth of daily BTC. Also, inclusive in Lee’s price theory is the current price of the crypto asset. In his own words:
“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.”
BTC attained a new all-time high this week, even breaching the $67K price level at some point. Furthermore, market observers postulate that although the price seems certain to keep rising, there will be key retracements here and there. They maintain that this is necessary for the establishment of new and higher support levels.
Image Credits: Pixabay
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