Bitcoin ETF Approval Won’t Make or Break Year End Price Point Says Fundstrat’s Tom Lee
Most crypto investors are eagerly awaiting the decision of the United States Securities and Exchange Commission (SEC) on whether the Bitcoin exchange-traded fund (ETF) will become a reality or not. As the price of Bitcoin does not go dramatically up in a long time, traders are waiting for the ETF to revive the market.
However, Tom Lee, an analyst from Fundstrat, does not believe that we’ll actually need the ETF in order to see prices going up again, though.
He affirmed that despite the chances that the ETF will be delayed or rejected, we will still have a great year for cryptos in 2019.
Tom Lee: Bitcoin ETF Will Not Be Launched In 2019
The first part of Lee’s prediction is actually pretty dire: he does not believe that the Bitcoin ETF will be approved by the SEC to soon. The year has just started, but a lot of speculation on what will happen has been made so far.
While the SEC is expected to have a decision about two ETF proposals, the first one made by CBOE, VanEck and SolidX and the other one by Bitwise and NYSE, Lee is not so confident. The result of whether these ETFs will be approved or not will be out in around 45 days, as soon as the verdict is out.
Many people argue that the ETF is coming soon, but many experts are far from positive because the SEC is wanting the industry to be more regulated before they regulate such an important product. The main problem that the SEC has with BTC is that is considered too easy to manipulate this market.
In a recent interview, Tom Lee affirmed that the reason for why he does not believe in the ETF this year is that the current environment does not set a precedent for it, an opinion that might have to do with how the SEC is interested in having the market more stable and transparent before approval.
Bitcoin Price Will Be Dramatically Higher In 2019
Do not let Lee’s prediction make you sad, though, as he believes that the price will be dramatically higher despite the non-approval of the ETF. He cites many factors that will make cryptos go up in price this year during the interview.
One good signal, according to him, is that the stocks market are up after December’s letdown and this could be a positive catalyst for BTC. He also believes that the weak performance of the USD can make the asset come under fire as the international reserve of money this could also make Bitcoin’s price go up.
The “fall of USD” is not an uncommon trend to be prophecized by crypto investors and analysts. Most of them are worried about the ever-growing debt of the United States and how hard it can be to pay it, which would make the fiat currency less valuable and people would look for another way to store their money. This is when Bitcoin comes in.
Another point is that JPMorgan’s JPM Coin, which is deemed as him as a real use case for cryptos and, despite being centralized, could show the investors how valuable this market actually is.
This led the analyst to conclude that emerging markets will outperform traditional equities in 2019. Is he right? No one knows, so we keep watching the market to know how well Bitcoin will fare.