The price of bitcoin on wall street could nearly triple when the first crypto exchange-traded fund (ETF) makes its New York Stock Exchange (NYSE) debut.According to analysts at US research consultancy Fundstrat.
The New York-based researchers, who had previously projected the world’s most valuable cryptocurrency to hit $100,000 by the year’s end, now say that the ProShares ETF may attract substantial inflows from investors, thus boosting the price of bitcoin on wall street.
According to Fundstrat, the new bitcoin futures ETF will deliver higher first-year inflows than the Invesco QQQ Trust Series 1 fund ETF was able to attract back in 2002 by tracking the Nasdaq 100 index.
“The new bitcoin ETF will enable vastly more individuals to allocate to crypto. We think bitcoin demand will exceed the inflows for QQQ,” Fundstrat Global Advisors co-founder Tom Lee said, as quoted by Yahoo Finance.
The analyst added that the bitcoin ETF could bring more demand from the investors, who already enjoy the option of purchasing and holding bitcoin via existing crypto exchanges.
Fundstrat expects the bitcoin ETF to bring inflows of around $50 billion, implying roughly $50 million in additional demand for bitcoin per day.
“There are some views that the run up in [bitcoin’s price] is already discounting this approval,” the expert said.
“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.”
Bitcoin is trading at around $62,650 as of 13:25 GMT, according to crypto data provider CoinMarketCap.