ETFs
Bitcoin at $350,000 with $500 billion in ETFs? “It doesn’t seem like an exaggeration” – DL News
- Matthew Sigel, VanEck’s head of digital assets research, says Bitcoin could reach $350,000 by 2030.
- He predicted that crypto ETFs could then have more than $500 billion in assets.
- Changing political winds and increased adoption by young people will drive prices higher.
One Bitcoin will be worth over $350,000 by the end of the decade. Ether, on the other hand, could cost $22,000.
That’s according to Matthew Sigel, head of digital assets research at VanEck, an investment firm with $90 billion in assets under management.
Sigel said DL News that in this scenario, crypto exchange-traded funds could end up sucking up $500 trillion in assets over the next five years.
“It doesn’t seem like a stretch,” Sigel said.
Change in political wind
Since January alone, Bitcoin ETFs have accumulated a record $60 billion in assets.
But the funds may only just be beginning.
“Bitcoin is likely to exceed $350,000 by 2030,” due to changing political winds and increased adoption among young people, Sigel told DL News.
“Election after election, this year ended with the most pro-crypto candidate winning,” Sigel said, adding that in the short term, investors will try to get ahead of a potential second Trump presidency by buying Bitcoin until ‘in November.
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Former US President Donald Trump recently came out as pro-crypto, in contrast to President Joe Biden, who was generally seen as opposed to the industry.
$500 billion in assets
To reach Sigel’s $350,000 target, Bitcoin would need to rise approximately 400% from its current price. This means that the $60 billion already held in ETFs would grow to $300 billion through value appreciation alone.
This is without counting the new flows, which, according to Sigel, would reach 10 billion dollars per year.
As for Ethereum, Sigel predicted that yet-to-be-launched spot ETFs will attract $15 billion over a six-month period, and then around $5 billion per year in new flows.
But Sigel estimated that the price of Ether could reach $22,000, which would increase the value of the ETF’s assets.
In total, crypto funds could generate $500 billion in assets across all products.