Bitcoin “democratizes” property for everyone
In a recent interview with CNBC, LMAX Group CEO David Mercer discussed the future of bitcoin and the impact of increased demand for spot bitcoin exchange-traded funds (ETFs). LMAX Group is a global financial technology company and a leading independent operator of multiple institutional execution venues for forex and cryptocurrency trading.
Mercer explains that if bitcoin becomes a standard part of investment portfolios, with “3% to 5% of every portfolio or asset in the world allocated to bitcoin”, we will see see a significant price increase. “Relying entirely on supply and demand – something we’ve never seen before,” he said:
“The price of bitcoin will increase more rapidly than it is now… I believe that in the more distant future – within 5 years, 10 years – this price will reach six digits, instead of just five digits like Currently.”
Impact of Bitcoin Spot ETF
Commenting on the impact of spot bitcoin ETFs and the increased appetite for cryptocurrencies, he shared: “If you look at all the institutions we serve – within the group, we work with 35 of the world’s top 40 banks, all the world’s major proprietary trading firms, and over 200 brokers – a group we had not previously considered banks.”
He continued: “They can engage in futures trading but not the actual trading. What you see today is the basis for these ETFs is the substance.” The moderator further explained:
“I think overall, this will make this asset class more democratic for everyone. It opens up market access from individuals to institutions.”
“What that means is that even high net worth people, private wealth managers in banks, can now offer products that give you direct exposure to the asset class,” said the director. LMAX executives continued: “I believe that over time, as all institutions become more comfortable with this asset class, you will see people get closer to owning that core asset, which is bitcoin, ethereum or solana.”
Related: Institutional Buying of Bitcoin Resumes in the US
Meanwhile, some analysts are increasingly optimistic about bitcoin, predicting that its price will increase significantly after the halving. For example, Standard Chartered Bank increased their price prediction for BTC from $100k to $150k this year. Bitwise’s chief investment officer also said that, over the long term, his company believes bitcoin is in a “strong bull market.”
