Tom Lee, co-founder of investment company Fundstrat, believes that if the US Securities and Exchange Commission (SEC) approves the launch of spot ETFs on bitcoin, the price of the first cryptocurrency could grow 5-6 times.
In late July, Fundstrat analysts predicted that the approval of ETFs with direct investments in BTC would significantly boost the bitcoin exchange rate. The firm’s managing partner backed the analysts during an appearance on CNBC’s “Squawk Box” program. Tom Lee emphasized that bitcoin ETFs have proven themselves internationally, but it is the approval of such a product in the U.S. that could be the basis for large-scale adoption of the first cryptocurrency.
The investor also noted that the cryptocurrency market is interconnected with the broader financial industry and stabilizing inflation rates will help to soften financial conditions. And this, in turn, may entail a loosening of the tough stance of various Central Banks towards the cryptocurrency industry. Tom Lee himself expects that overall inflation in the US could be less than 2% by the end of the year.
Back in 2022, Tom Lee was urging the older generation to invest in bitcoin, and it was baby boomers who had accumulated 76% of US capital.