CNBC’s Tom Lee predicts that Bitcoin could hit between $150k and $180k when a spot Bitcoin ETF application gets approval.
According to him, another ETF denial would have a limited effect on the price, however, it may struggle to hit the six-figure range.
With widespread anticipation building around the first possible spot Bitcoin Exchange-Traded Fund approval, Tom Lee, Head of Research and contributor at CNBC, has analyzed and mentioned some of the possible expectations in the crypto market and Bitcoin price performance. According to him, one aspect of Bitcoin’s metric that could be massively impacted is the demand. In case of approval, the demand would far supersede the supply of Bitcoin. This could send the price between $150k to $180k before the year ends according to Tom Lee.
Demand would be greater than the daily supply of Bitcoin, and the clearing price could leverage the increased demand to spike above a $150k price level.
In his explanation, Tom Lee stated that spot Bitcoin ETF may hold the asset, and allow investors to access the price without unlocking its purchase option. Against the backdrop of regulatory uncertainties and several rejected spot Bitcoin ETF applications, other jurisdictions are already embracing the initiative. Recently, the first spot Bitcoin ETF was approved and launched in Europe after pushing for more than a year. It launched on August 15 on the Euronext Amsterdam stock exchange. On the positive side, this is expected to convince the US to announce its first approval.
According to Tom Lee, the Bitcoin market would not be massively affected when the SEC refuses to approve any of the ETF applications. The reason is that there would still be a decline in supply next year against the rising demand, and this would be enough for a price surge. However, the upward run would not be in the six-figure range.
Former SEC Chair Speaks on Spot Bitcoin ETF Approval
Former SEC Chair Jay Clayton was asked about the ongoing discussion surrounding the possible approval of a spot Bitcoin ETF. In his response, Clayton stated that the SEC would find it difficult to resist approval.
I was very skeptical about trading in the #bitcoin market when I was SEC Chair. But if you can demonstrate that the spot market has similar efficacy to the futures market, it would be hard to resist approving a #bitcoin ETF.
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Also, he admitted that there has been a significant market shift since his tenure as SEC chair. According to him, he saw Bitcoin as an offshore retail that could be used as a tool for manipulation and wash trading. Today, several reputable institutions have entered the market. Clayton believes that companies are willing to put their reputation at stake to push the perception that trading and custody protection is enough to offer products.
BlackRock has recently submitted a spot Bitcoin ETF application. Its track record of getting 575 ETF applications approved by the SEC and having one rejected puts the odds in its favor. Some other companies that previously saw their applications rejected have reapplied. Some of these include Wisdom Tree and Invesco. Wisdom Tree has had its application rejected on two occasions.
Bitcoin (BTC) is currently on a decline after breaking multiple support levels to trade at $26,391.96. In the last seven days, the asset has fallen by 10 percent.
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