Bitcoin at $350,000 with $500bn into ETFs? ‘It doesn’t seem like a stretch’

One Bitcoin will be worth north of $350,000 by the end of the decade. Ether, meanwhile, could be priced at $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 told DL News that in this scenario, crypto exchange-traded funds could end up vacuuming $500,000 billion in assets within the next five years.

“It doesn’t seem like a stretch,” Sigel said.

Changing political winds

Since only January, the Bitcoin ETFs have accumulated a record $60 billion in assets.

But the funds may just be getting started.

“Bitcoin is likely to exceed $350,000 by 2030″ off the back of changing political winds and increased adoption among young people, Sigel told DL News.

“Election after election, this year has ended with the more pro-crypto candidate winning,” Sigel said, adding that, in the short term, investors will try to front-run a potential second Trump presidency by buying Bitcoin up until November.

Former US president Donald Trump has recently marketed himself as pro-crypto, contrary to President Joe Biden, generally seen as averse to the industry.

$500 billion in assets

To meet Sigel’s $350,000 target, Bitcoin would have to rise roughly 400% from its price today. That means the $60 billion already held in ETFs would swell to $300 billion on value appreciation alone.

That’s without counting new flows, which Sigel estimated would reach $10 billion per year.

As for Ethereum, Sigel predicted the yet-to-be-launched spot ETFs will attract $15 billion in a period of six months, and then about $5 billion a year in fresh flows.

But Sigel estimated that the price of Ether could reach $22,000, which would boost the value of the ETF assets.

All in all, crypto funds could end up with $500 billion worth of assets across all products.