Fundstrat investment firm co-founder Tom Lee believes that if the U.S. Securities and Exchange Commission (SEC) approves the launch of spot bitcoin ETFs, the price of the first cryptocurrency could rise five to six times.
In late July, Fundstrat analysts predicted that approval of a direct-investment BTC ETF would significantly boost the bitcoin exchange rate.
The firm’s managing partner backed 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 has interconnectedness with the broader financial industry and stabilizing inflation rates will help soften financial conditions.
And this, in turn, may entail a loosening of the various Central Banks’ tough stance on the cryptocurrency industry.
Tom Lee himself expects overall inflation in the US could be less than 2% at year-end.
Back in 2022, Tom Lee urged the older generation to invest in bitcoin, and it was the baby boomers who had accumulated 76% of US capital.