The co-founder and head of research at Fundstrat, Tom Lee, predicted Bitcoin (CRYPTO: BTC) could be worth $500,000, a 1,120% increase, within five years. Although analysts often miss the mark with forecasts, this particular prophecy grabbed the attention of financial circles as Lee was spot-on with his 2013 supposition that the Dow Jones Industrial Average would reach 20,000 by 2017.
Bitcoin ETFs can see the cryptocurrency shoot through the roof
This economist was also correct in his bullish S&P 500 approach, despite everyone anticipating recession and stock price drops. Lee said this index would end at 4,750 in 2023. It closed at 4,769.
Still trying to regain a balance after the FTX scandal, TerraUSD $60bn wipe-out, and crash which saw Bitcoin plunging from $69,000 in 2021 to $16,256 in 2022, cryptocurrency markets entered 2023 on the front foot as the SEC approved 11 Bitcoin ETFs. Regulator crackdowns on irregularities, such as the Binance money-laundering issues, also instilled renewed confidence in investors.
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In 2023, Bitcoin increased by 150%. It closed Tuesday, 24 January, trading at $40,0754.55 and has a current market cap of $780.97bn. Owning Bitcoin before the approval of the ETFs was risky as it either sat in a digital wallet or brick-and-mortar storage, saved on a memory stick. Financial managers running these groundbreaking ETFs include BlackRock, Ark Investment Management, and Fidelity.
Predictions are that these ETFs can trigger a demand ranging between $50bn to $100bn during 2024 as asset managers buy up tokens. Presently, annual spot-bitcoin ETF fees hover between 0.2% and 1.5% of the total value of Bitcoin owned.
