Fundstrat’s managing partner Tom Lee believes Bitcoin could hugely benefit from a new market following the introduction of spot BTC exchange-traded funds (ETFs) in the world’s largest economy.
In a new CNBC interview, Lee says say spot Bitcoin ETFs will make a “big difference” in the market cap of the leading digital asset as it allows US households to gain BTC exposure in an easy and secure process.
According to Fundstrat’s director, just a small portion of US household wealth allocated to BTC will more than double Bitcoin’s value.
“Rather than having to go to an exchange and then worry about your private keys, many investors can now use traditional financial markets to access Bitcoin. There is $150 trillion in household net worth in the US alone.
Only allocate 1% [of US household wealth] in crypto would be an inflow of $1.5 trillion. That is already more than the network value of Bitcoin.
So I think there’s huge potential and I think it’s a very important diversification for a lot of people who have exposure to US dollar assets in stocks or bonds. And you know, Bitcoin is a really good hedge against a lot of monetary risks.”
Bitcoin is trading at $42,684 at the time of writing, with a market cap of almost $836 billion.
Last week, Lee predicted that Bitcoin could surpass $100,000 and reach $150,000 before the end of this year.
“I think in the next 12 months there will be a little over $100,000, maybe $150,000. And in the next five years there is a finite supply and now we have a potentially huge increase in demand with spot Bitcoin [exchange-traded fund] approval, so I think in five years something like $500,000 would be potentially feasible.
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