According to a Fundstrat Global Advisors analyst, a new Bitcoin (BTC) exchange-traded fund (ETF) could bring in up to $50 billion in its first year, driving up the price of the benchmark cryptocurrency even further.
According to Fundstrat Global Advisors co-founder Tom Lee, demand for the ProShares exchange-traded fund may outperform the Invesco QQQ Trust Series 1 fund in the first year. When the Invesco QQQ ETF began tracking the Nasdaq 100, it brought in $36 billion, but Fundstrat predicts that the ProShares Bitcoin ETF will outperform it.
Fundstrat previously set the year-end price target for Bitcoin at $100,000, but the research firm now believes that BTC could reach as high as $168,000 if investors flock to the new Bitcoin ETF.
Lee points out that the equilibrium price of $168,000 takes into account only the anticipated additional demand for approximately $50 million in BTC per day and the current price of the crypto asset.
“Some believe that the recent rise in [Bitcoin’s price] has already discounted this approval.”
To some extent, this is probably true, given that Bitcoin has recently surged to near all-time highs. However, we believe that the price of Bitcoin will continue to rise even after the ETF is approved.”
This week, Bitcoin reached a new all-time high, surpassing $67,000 at one point.
Lee explains why he believes Bitcoin’s price will continue to rise.
“I believe Bitcoin is still on the rise. The story revolves around both store value and protection against inflation, as well as state censorship. Those are the three main reasons why people want to own something like Bitcoin.
And because it is a network value asset with exponential growth… Yes, I believe a hundred thousand dollars is feasible before the end of the year.”