Prices of bitcoin and ethereum haven’t done much to spark enthusiasm in recent weeks. That lethargy could be belying significant appreciation potential.
In what could prove to be good news for investors considering exchange traded funds such as the Invesco Alerian Galaxy Crypto Economy ETF (SATO ), a recent survey by London-based Nickel Digital Asset Management indicates professional investors are bullish on bitcoin and ethereum. That’s pertinent to SATO because the Invesco ETF’s equity holdings are primarily shares of companies that engage in cryptocurrency mining.
“The study with institutional investors and wealth managers in the U.S., U.K., Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $3.5 trillion in assets, found 97% of investors believe Bitcoin will end the year with prices higher than current levels while almost all (99%) expect Ethereum to continue to grow in price,” according to Nickel Digital.
The research firm conducted the survey when bitcoin was trading around $30,000 and ethereum resided around $1,900. Today, those prices are approximately $26,250 and $1,590, respectively.
Good News Possible for Crypto Investors
More than half of respondents to the survey believe bitcoin can move to $35,000 by the end of 2023. And two-thirds think ethereum can jump to or beyond $2,250.
Four out of five respondents in the Nickel Digital survey see bitcoin eventually making its way to $100,000. That would be nearly quadruple current levels. Fifty-seven percent believe that lofty price can be reached within five years.
“The strong performance of the two key cryptocurrencies is expected to boost demand for altcoins underlining the restored confidence in the digital assets sector. Around nine out of out 10 (89%) questioned believe Bitcoin and Ethereum growth will fuel demand for altcoins,” added the research firm.
Should U.S. regulators approve a spot bitcoin ETF, that could act as another credible catalyst for SATO components.
“Institutional investors questioned believe the successful launch of a Bitcoin Spot ETF could further boost the sector – around two out of three (64%) say it would have an impact on the price of Bitcoin with 20% forecasting a significant impact,” concluded Nickel Digital.
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