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Tom Lee Predicts Bitcoin Price Could Hit $150K with ETF Approval

• Tom Lee, Head of Research at CNBC predicts that the price of Bitcoin could spike to between $150k and $180k when a spot Bitcoin ETF application gets approval.
• Former SEC Chair Jay Clayton is optimistic about the possible approval of a spot Bitcoin ETF given its similarity to the futures market.
• If denied, Tom Lee believes that the market will not be massively affected but the surge in price may not reach six-figures.

Bitcoin’s Price Forecast

Tom Lee, Head of Research and contributor at CNBC has predicted that if a spot Bitcoin Exchange Traded Fund (ETF) is approved, the demand for Bitcoin would far exceed its supply resulting in a surge in prices ranging from $150K – $180K.

SEC Approval Anticipated

The anticipation surrounding the first possible spot Bitcoin ETF approval has been growing with recent developments such as Europe launching their own ETF on Euronext Amsterdam stock exchange on August 15th. This is expected to encourage US authorities to follow suit and announce their first approval soon.

Impact of Denial

Despite regulatory uncertainties and several rejected applications, former SEC Chair Jay Clayton remains optimistic about the outcome. However, if an ETF application is denied, Tom Lee believes that while there would still be a decline in supply next year against rising demand, it may struggle to hit the six-figure range.

Similarity with Futures Market

Spot Bitcoin ETFs allow investors to access prices without unlocking purchase option which makes them similar to the futures market according to Clayton. He also added that it would be hard for them to resist approving an ETF since they have similar efficacy as futures markets.

Conclusion

In conclusion, Tom Lee predicted that if an Exchange Traded Fund (ETF) based on Bitcoins is approved then its price could shoot up by around 150k – 180k dollars due to increased demand surpassing its supply rate. Furthermore, former SEC Chair Jay Clayton was hopeful about this being approved because he saw similarities between spot bitcoin ETFs and futures markets making it difficult for them to resist approving one should conditions be met