Bitcoin Should Hit $150,000 Before an ETF Can Work, Fundstrat’s Lee Says
- Strategist says U.S. SEC is doing a ‘great job’ in crypto
- Fundstrat says agency will pave way for mainstream adoption
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The $200 billion cryptocurrency market is far too small for an exchange-traded fund to work, according to Fundstrat Global Advisors LLC’s Tom Lee.
Numerous attempts to get approval from the U.S. Securities and Exchange Commission for crypto-related ETFs have been stymied, and Lee doesn’t think it’s a bad thing. Big fund launches in the U.S. can have around $13 billion of first-year demand, he noted. He estimates Bitcoin needs to be around $150,000 to cope with daily demand on an ETF. That’s compared with about $8.400 as of 11:30 a.m. New York time -- so the asset would need to rise in price by more than 15-fold.