- Hedge fund founder Tom Lee believed that BTC would exceed its ATH shortly after ETF approval.
- Another major player in the market predicted an increase in liquidity.
The anticipation around a potential Bitcoin [BTC] spot Exchange-Traded Fund (ETF) adoption has been a hot topic of discussion within the cryptocurrency community lately. For many investors, regulatory acceptance would have a positive impact on BTC price.
Read Bitcoins [BTC] Price prediction 2023-2024
However, a few skeptics do not believe that a green light from a centralized entity would do any good for the price action. One notable person who has commented on the issue is Tom Lee.
$150,000 or nothing
Lee, who has repeatedly been bullish on BTC, said he was not surprised that August was a weak month for the coin. In his interview at CNBC, he based his opinion on BTC’s historical performance. He noted that historically, a strong July for BTC equates to an unimpressive August.
Speaking of the ETF filing, the founder of Fundstrat Global Advisors, a market research firm, said:
“If the Bitcoin Spot ETF is approved, I believe demand will exceed daily supply. And the clear price can be up to $150,000 or $180,000.
But Lee also clarified that the spot ETF must be approved in the US in order for the price to get that high. Although on August 14 CNBC reported that the US SEC delayed the approvals of ARKInvest and 21Shares.
Also, the regulatory body pushed the deadline until early 2024. However, AMBCrypto had a brief conversation with Ruslan Lienkha on the matter.
More ETFs, more liquidity
Lienkha, the Chief Markets Officer at YouHolder, believed that the ETF approval could spark global adoption of crypto assets. He also said more companies would want a share of the market.
Furthermore, Lienkha admitted that Jacobi’s ETF approval in Europe had no significant impact on BTC. But it is not sufficient reason to believe that approval in the US would not lead to an upward trend.
To explain this, Lienkha used BTC regional Year-on-Year (YoY) delivery as a reason for the advice. The chart below shows that decisions from the US and Asia had more impact on BTC, as Europe was still neutral.
Source: Glassnode
How many Worth 1,10,100 BTCs today?
Finally, Lienkha said a Bitcoin spot ETF approval in the US would bring more liquidity to the market and encourage diversification. He said,
“Basically, more ETFs will bring more liquidity to the crypto market and drive market growth. Crypto is also better integrated into the financial system.”
Meanwhile, the US SEC may still approve Bitcoin spot ETFs this year given recent developments. Lately, Coinbase revealed that the CTFC has approved her application for a Bitcoin and Ethereum [ETH] futures ETF. Therefore, all hope should not be lost for the former.