Tom Lee hints at the possible outcome of a spot Bitcoin ETF approval in the United States, suggesting an increase above the $150 price level for Bitcoin.
Tom Lee, Head of Research and contributor at CNBC, weighs in on the implications of a potential spot Bitcoin ETF trading approval by the U.S. SEC.
Speaking in an interview on CNBC Market Alert, Tom noted significant aspects of Bitcoin’s metrics that would be affected by a potential SEC’s approval of spot Bitcoin ETF trading. He also stated how these metrics could impact the asset’s price.
“Demand Will Be Greater Than The Daily Supply Of Bitcoin” – Tom Lee
When quizzed about his price projection for BTC at the end of next year, The CNBC contributor noted that Bitcoin could attain a price high in the range of $150k to $180k.
Per Tom, his Bitcoin price forecast would hinge mainly on whether the United States crypto regulatory body, SEC, authorizes the approval of a spot Bitcoin ETF in America.
Describing how the approval of a spot Bitcoin ETF would impact the token’s price. Tom added, “Demand would be greater than the daily supply of Bitcoin, and the clearing price could leverage the increased demand to spike above a $150k price level.”
It is worth noting that a spot Bitcoin ETF holds Bitcoin while allowing investors access to the asset’s price without triggering Bitcoin’s purchase option.
Europe Launches First Spot Bitcoin ETF
While the United States seemed to hesitate on spot Bitcoin ETF trading approval, Europe’s maiden spot Bitcoin ETF has gone live after pushing for over a year. The ETF trading went live on the Euronext Amsterdam stock exchange on Tuesday, August 15.
It is left to see how Europe’s adoption of spot Bitcoin ETF would hasten the decision by the U.S. SEC. Meanwhile, per a previous report, reputable crypto and financial firms in the United States have joined BlackRock in reigniting their quest for a spot Bitcoin ETF approval.
Notable investment management firms pushing for spot Bitcoin ETF authorization on their various platforms include the Wisdom Tree and Invesco.
It is worth mentioning that the Wisdom Tree applications for a spot Bitcoin ETF approval got rejected on two different occasions. The platform’s proposals got rescinded in December 2021 and October 2022, yet the outlet is not giving up.
Bitcoin’s Ascent To A Price Level Above $29K – Possibilities Without SEC’s Approval Of Spot Bitcoin ETF Approval
Tom Lee was also quizzed on what could be the impact of a failed spot Bitcoin ETF trading authorization. In response, Tom stated that a drop in supply would still play out next year, which would spike the asset’s price. Although, he specifically noted that the token’s ascent would not be in the six-figure range.
Meanwhile, former SEC Chairman Jay Clayton had previously weighed in on a potential Spot Bitcoin ETF approval. The former Chair noted that rejecting a Bitcoin spot, ETF will be challenging for the SEC.