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Fundstrat’s Co-Founder Tom Lee: No ETF Until BTC Reaches $150K

fundstrat's co-founder

Fundstrat’s co-founder Tom Lee stated that a bitcoin ETF will not happen unless the price of the leading cryptocurrency reaches $150K. In our latest bitcoin news, we take a closer look at his stance on ETFs.

The crypto markets are too small and Bitcoin has to see the prices around $150,000 to warrant an ETF as per the Fundstrat’s co-founder Tom Lee. According to him, the market size is the key to unlock the SEC approval for an ETF and the total capitalization of the cryptocurrency market is currently hovering under the $250 billion, according to the data from CoinMarketCap. Bitcoin is hovering over 65 percent of its value.

Lee argues that the commission is doing its job at establishing protections for the individuals as it issues repeated rejections of rules applications that will allow the ETF. Lee remarked at the Blockshow Conference in Singapore last week:

 “The SEC needs to punt the ETF until crypto becomes bigger.’’

Also, last month when the regulator denied the Bitwise ETF application on the grounds that it failed to demonstrate the options to prevent fraudulent and manipulative acts and practices. And the commission also questioned the application’s plans to create a fund that will be base the pricing model on the data from only five percent of the market, namely the exchanges that are believed to only host real trading. The commission wrote in the press release:

 “A surveillance-sharing agreement must be entered into with a “significant market” to assist in detecting and deterring manipulation of the ETP because a person attempting to manipulate the ETP is reasonably likely to also engage in trading activity on that “significant market.’’

When Bitwise declared 95 percent of the reported volume to be fake, the SEC was not able to approve the Crypto ETF. Lee pointed out that the exchange-traded products can see $13 billion worth of demand in the first year and the current reported volume of Bitcoin is little over $18 billion according to coinmarketcap. By less than five percent of that is less than one billion dollars which means that a high profile ETF could overwhelm the entire market with derivative products.

Lee estimated that the price of Bitcoin will have to hit $150,000 before a Bitcoin ETF is approved.

The post Fundstrat’s Co-Founder Tom Lee: No ETF Until BTC Reaches $150K appeared first on DC Forecasts – Leading Digital Currencies.