Bitcoin would need to soar 1,670% to make an ETF possible, strategist Tom Lee says
- Bitcoin would need to surge past $150,000 per coin to make an exchange-traded fund for the coin feasible, Fundstrat Global Advisors co-founder Tom Lee said, according to Bloomberg.
- The estimate requires a 1,670% gain for the popular cryptocurrency. It traded at roughly $8,488 as of 3 p.m. ET Friday.
- Large fund launches can bring in $13 billion in first-year interest, and the buzz around cryptocurrencies remains healthy, Lee said.
- Lee praised the Securities and Exchange Commission for the crypto-related regulation it's done so far, saying "institutions aren't going to touch crypto" until the SEC endorses products like ETFs and other funds.
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Bitcoin would need to surge past $150,000 per coin to make an exchange-traded fund for the cryptocurrency work, Fundstrat Global Advisors co-founder Tom Lee said, according to Bloomberg. Such an advance would mark a roughly 1,670% increase from current levels.
Several firms look to ride the hype behind crypto-coins through related ETFs, but the Securities and Exchange Commission has mostly stifled attempts to form such alternative assets. The $200 billion crypto sector enjoyed a moderate recovery from an early-fall trough, but it still has a way to go to meet demand necessary for an ETF, Lee said.
"The SEC needs to punt the ETF until crypto becomes bigger," Lee reportedly said at conference in Singapore on Friday, adding that "demand for an ETF is monstrous."
Large fund releases can bring in around $13 billion in first-year demand, and the buzz around cryptocurrencies remains healthy, according to Lee. His $150,000 estimate requires a 1,670% gain from bitcoin's current price.
The digital currency traded at $8,488 per coin at 3:00 p.m. ET Friday.
The managing partner praised the SEC's regulation around cryptocurrencies so far. The agency may "look like an obstacle," but it's doing a "great job" at keeping investors protected, he said, according to Bloomberg.
"Institutions aren't going to touch crypto if they think the SEC isn't doing a good job," Lee reportedly added.
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