New Bitcoin Futures ETF Could Trigger a Rally to $168,000


Bitcoin’s price could surge from the news of a new Bitcoin futures ETF, according to analysts at Fundstrat.

The Fundstrat team had published a year-end bitcoin price target of $100,000. Yet, it believes that if the ProShares ETF’s inflows are serious, Bitcoin could spike to as high as $168K.

Fundstrat predicts that the new bitcoin futures ETF will attract higher inflows. As compared to what Invesco QQQ Trust Series 1 fund was able to do in 2002 by tracking Nasdaq.

“[T]he [new bitcoin ETF] will enable more individuals to allot to crypto.” Fundstrat Global Advisors co-founder Tom Lee wrote. “We think Bitcoin demand will exceed the inflows for QQQ.”

Fundstrat’s thesis is bullish on investor interest for a fund settled in bitcoin futures. The Securities and Exchange Commission Chair Gary Gensler nodded his openness to approve an ETF tied to the crypto. As opposed to one contingent upon spot rates.

Investors can already buy and hold bitcoin themselves through exchanges like Coinbase. Although they might soon be able to get in on the action with an ETF. Lee explained how this could bring more demand for cryptocurrencies.

He referenced the QQQ ETF, an excellent investment. It offered diversification among the top tech names and saw inflows of $36 billion within its first year.

ProShares Bitcoin ETF May Rise

Based on recent events, Fundstrat is predicting the ProShares bitcoin ETF will rise. Infact, it will exceed that by bringing in $50 billion and creating a daily demand for Bitcoin of $50 million. They reached the equilibrium price after taking into account current supply prices.

The Bloomberg Intelligence reports that the Gold Shares fund (GLD) is currently possessing more than $900 million in assets. It only took them three days to get there, which shows how fast this investment has been gaining momentum.

Though it may seem like the Bitcoin ETF has been waiting for eight years, Lee believes that its reception will have no bearing on the price.

“There are some views that the run up in [bitcoin’s price] is already discounting this approval,” Lee wrote. “To an extent, this is true, since Bitcoin has surged to near all-time highs in the past few weeks. But in our view, the price of Bitcoin will continue to rise, well after actual approval of the ETF.”

The ProShares Bitcoin ETF is set to become the first of its kind when it begins trading on NYSE with ticker “BITO.”