Bitcoin-ETFs in the USA: A Potential Game Changer for Crypto Investors
Date: 2023-09-11 Author: Dima Zakharov Categories: IN WORLD
The world of cryptocurrency is buzzing with excitement as experts predict a significant surge in Bitcoin's value following the potential introduction of Bitcoin Exchange-Traded Funds (ETFs) in the United States. In a recent interview with CNBC, Tom Lee, the founder of Fundstrat, shared his optimism about Bitcoin ETFs and suggested that the cryptocurrency's price could skyrocket to $185,000. This article will delve into the most hyped news in the cryptocurrency world, explaining what Bitcoin ETFs are and why they are generating so much interest.
Bitcoin ETFs: A Game Changer for the Crypto Market
Bitcoin ETFs are financial instruments designed to track the performance of Bitcoin without requiring investors to buy and hold the actual cryptocurrency. They offer a convenient way for traditional investors to gain exposure to the crypto market without the complexities of managing digital wallets or understanding blockchain technology.
Tom Lee's bullish prediction of a $185,000 Bitcoin price is rooted in the belief that once Bitcoin ETFs are approved by the U.S. Securities and Exchange Commission (SEC), institutional and retail investors will rush to invest. The likelihood of SEC approval stands at 75%, according to Bloomberg analysts.
K33 Research, a prominent player in the crypto research field, has made its own projections. They anticipate that within four months of Bitcoin ETFs launching in the USA, these funds could attract anywhere from 70,000 to 100,000 Bitcoins. The research division's head, Vetle Lunde, predicts an initial inflow of at least 30,000 Bitcoins within the first ten days after the launch.
Drawing on the experience of Canada, where Bitcoin ETFs were introduced in 2021, Lunde highlights the potential for rapid growth. In Canada, Bitcoin ETFs attracted 58,000 Bitcoins within four months of their debut. As institutional investors began to embrace cryptocurrencies, the value of Bitcoin also experienced significant gains.
The U.S. market dwarfs that of Canada in terms of capital, making it possible for an influx of up to 100,000 Bitcoins. Lunde goes further to suggest that within 40 days of the Bitcoin ETF launch, the cryptocurrency's price could reach $36,527. Within four months, it may surge to $42,763.
