Traders tip bitcoin to hit $US100,000 within five years
afr.comCryptocurrency advocates are tipping the price of bitcoin to reach $US100,000 within the next five years as approval of the first exchange-traded funds for digital assets open the floodgates to institutional investors.
Lisa Wade, the chief executive of DigitalX, which runs two digital asset funds for wholesale investors, said “really grounded” analysis by her team suggested that bitcoin would easily reach the equivalent of six figures in US dollars in the near future.
DigitalX chief executive Lisa Wade and Trovio chief investment officer Vimal Gor on stage at the Summit. Peter Rae
“I think a lot of people in the industry have PTSD after last year, but its undeniable over the long-term horizon that [bitcoin] will be a really great investment class,” she told The Australian Financial Review Cryptocurrency Summit.
“If just 1 per cent of all global wealth was put into bitcoin that gets us to $US100,000 within five years,” she said.
Not to be outdone, Richard Galvin, chief executive and co-founder of Digital Asset Capital Management, said he could see bitcoin reaching $US101,000 in the same time period.
Mr Galvin added that DACM had been fielding interest from institutional and sophisticated investors, including family offices looking for exposure to alternative assets.
“We only deal with wholesale, sophisticated investors and the vast majority are coming from overseas,” he said.
“They’re probably at 1 or 2 per cent allocation [...] maybe up to 5 per cent in some cases.”
At the Financial Review’s first Crypto Summit in April last year, SkyBridge Capital founder Anthony Scaramucci predicted bitcoin would hit $US500,000. At the time it was trading around $US50,000 but more than halved in the following six months.
On Monday
Read more on afr.com
