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Boffo Bitcoin Forecast Could Boost This ETF | ETF Trends

Compared to other asset classes, bitcoin is young, but the largest digital asset by market value is no stranger to jaw-dropping price predictions.

In the form of a reiteration, another recently arrived for bitcoin when venture capitalist and notorious bitcoin bull Tim Draper reiterated his view that the cryptocurrency could reach $250,000 next year. This implies a more than 12x upside from where bitcoin resided as of November 7.

Should this prediction turn out to be accurate, even remotely, an assortment of exchange-traded funds would likely benefit. This group includes the Invesco Alerian Galaxy Crypto Economy ETF (SATO). SATO tracks the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts, and ETPs Index.

SATO could be worth valuing in the near term, with Draper predicting a jump to $250,000 by “mid-2023” per bitcoin.

“The famed venture capitalist’s new time horizon came after he first predicted in 2018 that Bitcoin would reach this milestone in 2022. This had come after Draper Properly predicted that Bitcoin would surpass $10,000 by 2017 in 2014,” reports Fredrik Vold for CryptoNews.

For investors who want to participate in some of this potential upside without directly owning bitcoin, SATO is a relevant solution. The Invesco ETF allocates 16.37% of its weighting to Grayscale Bitcoin Trust BTC (GBTC)ensuring that the ETF has more than enough leverage over bitcoin’s price action.

The rest of SATO’s 39 holdings are stocks with the “crypto-correlated” designation. This further enhances SATO’s ability to provide bitcoin participation to investors without forcing them to directly own the digital asset. This could be an attractive trait in the future.

“Tim Draper has been a well-known investor in early-stage tech companies for several years now. Some of his best-known investments include companies like Tesla, SpaceX, Robinhood and Skype,” according to CryptoNews. “Draper said he first bought Bitcoin in 2011 on a now-defunct Bitcoin exchange Mount Gox but lost it all when Mt. Gox collapsed. He still hasn’t lost faith in cryptocurrency, and in 2014 he won a US Marshals Service auction for nearly 30,000 BTC at a price of $472 per coin.

SATO’s case is bolstered by the fact that the ETF’s list includes high-quality stocks that could rebound next year regardless of how bitcoin performs. These include Goldman Sachs (NYSE: GS), JPMorgan Chase (NYSE: JPM), Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA).

For more news, insights and strategy visit the Encryption channel.

Opinions and predictions expressed herein are solely those of Tom Lydon and may not materialize. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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