Bitcoin (BTC) to $100,000 and an ETF as early as next month? Well-known Bloomberg analyst thinks so

Bloomberg analyst Mike McGlone is confident that bitcoin (BTC) will soon rise to $100,000. He repeated that again last week on Twitter:

On September 20, he explains the price increase in an interview with Daniela Cambone of Stansberry Research:

According to McGlone, bitcoin could potentially reach $100,000 by the end of October. One of the reasons for this is that he thinks the US regulator may finally issue a so-called exchange traded fund (ETF), or publicly traded fund, will approve.

Exchange Traded Fund

According to the analyst, the pressure on the Securities and Exchange Commission (SEC) is high to approve an ETF. Canada has already launched several ETFs this year, causing money to flow out of the US and into Canadian ETFs. There are also more than 30 applications on the table with the SEC, McGlone said.

For years, the expectation has been that a US bitcoin ETF could attract many investors, mainly institutional. In the US, most institutional investors are only allowed to invest in bitcoin indirectly, for example through the Grayscale Bitcoin Trust (GBTC). Grayscale also plans to turn its bitcoin fund into an ETF.

However, it may (first) become an ETF for bitcoin futures, or forward contracts. They wouldn’t be the best ETFs, according to McGlone, but better than nothing. SEC chairman Gary Gensler recently indicated that he was open to bitcoin futures ETFs and the SEC quickly received several applications. McGlone calls it “baby steps,” but that it may still open the floodgates for investors.

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Diversification

Furthermore, McGlone says that the other reasons for a bitcoin price rise are quite simplistic. Supply continues to decline and demand continues to rise. He also sees more and more investors stepping out of gold and embracing cryptocurrencies.

Investors are afraid of being left behind. McGlone reports that gold is down 7% in the past year while bitcoin is up nearly 70% and ethereum (ETH) as much as 400%. Bloomberg analyst says gold is the best ever hedge was, but that horses were also the best means of transport until the car.

Furthermore, McGlone says that the world is becoming more and more digitized. A world where people can transact immediately and with almost no cost 24/7. The “geeks inherit the earth” and investors who don’t diversify in crypto are left behind.

However, the interviewer points out that a correction in the stock market also pulls the crypto market down. Indeed, we saw that happen in March 2020 and again yesterday. According to McGlone, it’s about how these markets recover. In 2020, we saw crypto recover much faster than any other financial market.

McGlone also thinks the US will not ban crypto. To make that possible, laws would have to be changed and the internet banned. Finally to the question “bitcoin or ethereum?” he answers both: “diversification.”

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