Bitcoin, after soaring back to its all-time highs of around $65,000 per bitcoin over the last month, is surging after the launch of the first U.S. bitcoin futures exchange-trading fund (ETF).
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The bitcoin price has added around 35% since mid-September as hype around the long-await ETF has built. Meanwhile, ethereum, the second-largest cryptocurrency after bitcoin, is again closing on the closely-watched $4,000 per ether level.
Now, as excitement over the ProShares’ bitcoin futures ETF reaches fever pitch, bullish crypto analysts at Fundstrat Global Advisors have predicted the bitcoin price could climb as high as $168,000 by the end of 2021 if demand meets sky-high expectations.
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“[T]he [new bitcoin ETF] will enable vastly more individuals to allocate to crypto,” Fundstrat Global Advisors co-founder Tom Lee wrote, it was reported by Yahoo Finance. “We think bitcoin demand will exceed the inflows for QQQ.” The Invesco QQQ ETF, launched in 1999, tracks the tech-heavy Nasdaq’s
100 biggest companies.
The newly-listed bitcoin futures ETF had a huge first day on the New York Stock Exchange with around $1 billion of intra-day trading volume, making it one of the most popular ETF launches ever, according to ETF.com.
The bitcoin futures ETF launch has pushed the combined crypto market back over $2.5 trillion, surpassing its all-time high. Ethereum, after outperforming bitcoin during the last 12 months, is now following bitcoin higher—up 11% over the last 30 days.
Bitcoin and crypto market watchers are hoping the ETF will boost bitcoin trading volumes and make it easier for cash to flow into digital assets. However, some have warned the bitcoin price might crash in the aftermath of the ETF launch as traders look to cash out.
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The bitcoin price has added over 33% since this time last month.
“Despite active price growth, not all crypto market participants are equally optimistic,” Alex Kuptsikevch, senior financial analyst at FxPro, wrote in emailed comments.
“Some believe that now we are witnessing not the beginning of a new stage of large-scale growth but are approaching a correction. This is because reaching a new historical high (or a series of historical highs) may provoke the beginning of aggressive profit-taking by large investors who opened positions during the rebound from $30,000.”
“There are some views that the run-up in [bitcoin’s price] is already discounting this approval,” Fundstrat’s Lee added.
“To an extent, this is probably 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.”