- Coinshares executive targets Bitcoin price at $100,000 by the end of the year.
- One of the reasons for the prognoses is the potential Bitcoin ETF approval.
- Investors’ interest towards crypto sector is on the rise.
- Bitcoin supply scarcity will greatly influence the price
YEREVAN (CoinChapter.com) – Meltem Demirors, the Chief Strategy Officer of the leading digital asset manager Coinshares, said in a recent interview that she sees Bitcoin more than doubling in price in Q4 2021. The executive put the target value at $100,000, despite the recent setback. In addition, the CSO presented several reasons to back up her prediction.
#1 Potential Bitcoin ETF approval
The executive pointed out that the approval of Bitcoin ETFs (exchange-traded funds) in the United States would greatly benefit the price. She also hinted that the approval in question was getting close. In hindsight, the ETFs allow retail investors to trade Bitcoin without actually owning it.
US Securities and Exchange Commission Chair Gary Gensler commented on his stance for the upcoming approval on Wednesday during the “Future of Asset Management North America” Conference. The Chair pointed out that he is not opposed to the idea and “looks forward to the staff’s review of such filings.”
The SEC has been dodging the question for years, despite receiving numerous approval requests. In 2017, one of the largest Bitcoin funds, Grayscale Investments, filed a request, which the agency denied. In 2019, the SEC got another request from crypto index fund Bitwise and rejected the idea again.
Cathie Wood, the CEO of ARK Invest and a famous Bitcoin bull, filed another request back in August but hasn’t got an answer as of the moment. Some experts within the Commission itself voiced their opinion on the overly difficult process of approval.
My view has been that we’re overdue on approving one of these things. I also think we’ve dug ourselves into a bit of a difficult hole by setting standards for approval that are difficult to figure out how to satisfy.said Hester Pierce, a commissioner with the SEC.
#2 Investors’ willingness to allocate into crypto is on the rise
Ms. Demirors commented on the fund inflow into the crypto market from firms and institutional investors.
We see a lot more firms taking on more bullish long calls.[…] There’s a lot of cash sitting on the sidelines, and a lot of investors are now seriously contemplating an allocation to Bitcoin in their portfolios.said the executive.
The executive also pointed out the abundance of “avenues” through which firms can make their investments. Publicly listed investment vehicles are a viable option. Investing directly through exchanges and platforms like Coinbase and Robinhood is also a widespread alternative.
Research backs the CSO’s claim. For example, a blockchain market intelligence outfit Blockdata traced the growing interest in cryptocurrencies from institutional investors and published the results in August 2021.
According to the statistics, 55% of the top 100 banks worldwide had cryptocurrency exposure through direct and indirect investments. Citigroup, Goldman Sachs, and Barclays were among the most active crypto backers.
Moreover, almost a quarter of the 100 banks are developing crypto custody solutions or investing in startups that offer custodial services for digital assets.
#3 Bitcoin supply scarcity
Ms. Demirors also pointed out that supply scarcity is often dismissed when it comes to Bitcoin. However, the supply squeeze takes a front seat when predicting the future price of digital assets. She thinks the “dramatic impact” will be substantial in Q4, as the supply gets smaller and smaller.
$50 billion around the world in Bitcoin-based investment products, that’s supply that’s taken off the market. We can’t understate how important the supply constraint on Bitcoin is in terms of its ability to drive dramatic price movements.commented the CSO.
The current supply is at 18,83 million at writing, while the maximal supply is at 21 million.