Exchange-traded fund providers are wagering that the bitcoin rally will accelerate over the next 12 months as institutional investors increase their exposure to the cryptocurrency, and the US introduces new regulatory support for digital assets. VanEck’s Australian arm, managing $24 billion, released its initial bitcoin forecast on Tuesday, predicting the cryptocurrency will reach $US180,000 ($274,000) by year’s end, a 50 per cent increase from current levels. VanEck offers a range of investment solutions, including exchange-traded funds, managed funds, and institutional mandates. The company aims to provide investors with access to diverse investment opportunities.
Bitcoin reached a record $US123,205 on Monday as “crypto week” commenced in the US. Congress is expected to debate and potentially pass crypto-related bills in the coming days. These bills aim to provide clearer regulation for digital assets, further legitimising the rapidly growing industry.
Australian investors have benefitted significantly from the latest rally, investing a record $163 million into ASX-listed bitcoin ETFs during the June quarter. On Wall Street, US bitcoin ETFs attracted $US3 billion ($4.6 billion) last week, including a record daily inflow on July 11.
“Bitcoin is back in price discovery mode,” VanEck’s head of investments Russel Chesler told The Australian Financial Review.