A financial research company analyst expects Bitcoin to continue its price surge until year-end as it rides on bullish technical indicators and increasing market demand.

In a CNBC interview uploaded via YouTube, Fundstrat’s Tom Lee shared his thoughts on Bitcoin’s continuing dominance in the context of incoming US President Donald Trump’s convincing election.

Bitcoin’s price is currently trading at the $91k level, and Lee expects that the top digital asset will consolidate near the $90,000 level, with its technicals setting it up for a sustained run.

According to technical analysts, Bitcoin is on its fifth Elliot Wave cycle, indicating an expected rise, with a price of $130k to $145k by year-end. According to Lee, Bitcoin can easily target this price with increasing market volume and a friendlier monetary policy from the Federal Reserve.

Lee Explains Why Bitcoin’s Rally Continues

In a CNBC interview, Lee explained that increasing market demand and solid technical indicators support Bitcoin’s recent price surge. He noted that Bitcoin is now in a consolidation phase and will likely stay at the $90,000 level.

Bitcoin’s price, he says, aligns with the price action of other risk assets. But Bitcoin is different because it’s more stable and shows resilience. According to Lee, Bitcoin thrives in a risk-taking environment, and the political and economic landscape favors the digital asset.

Major indices like the S&P 500 and NASDAQ have dipped on support levels, which offers a solid foundation for future growth. The same trend is happening for Bitcoin, suggesting that the asset is primed for another surge.

Lee also linked Bitcoin’s price performance with other market trends, including a “Trump trade.” He argued that Trump’s election was key in boosting the asset’s price. Then, there’s the recent confirmation of establishing the D.O.G.E., which aimed to promote efficiency and deregulation in the government.

BTC As A Strategic Reserve Asset

Lee pointed out that the proposals to make Bitcoin a strategic asset are also helping boost its market volume and price. Bitcoin can serve as a hedge against macroeconomic uncertainties, including inflation. He added that the current debates on the direction of US monetary policies, like cutting interest rates, are helping the crypto’s price.

Meanwhile, there’s an ongoing discussions on who will be the next Treasury secretary, which can also influence prices. Howard Lutnick of Cantor Fitzgerald is one of the leading names considered, advocating for Bitcoin’s legitimacy.

Increasing Retail And Institutional Support Pushing Bitcoin’s Price

Lee also suggested increasing support among retail and institutional investors, driving Bitcoin’s price. Based on data by CryptoQuant, Coinbase’s premium index increased at the rally’s start, suggesting surging interest from US retail investors. However, these numbers have dipped recently, reflecting a slowdown in retail action.

For Coosh Alemzadeh, Bitcoin’s current price chart and technicals suggest future growth. He added that Bitcoin is at its fifth wave of the Elliot Wave cycle, which is at the peak of a price surge. Based on his projection, BTC’s price can reach $145k by year-end.

Featured image from SCMP, chart from TradingView

Grayscale Investments has filed an updated prospectus for its Bitcoin Covered Call ETF (exchange-traded fund).

 It signals a swift action after the Commodity Futures Trading Commission (CFTC) approved the listing of spot Bitcoin ETF options.

Grayscale Pursues Bitcoin Covered Call ETF

The fund, which will offer exposure to Bitcoin and the Grayscale Bitcoin Trust (GBTC), aims to generate income through actively managed call and put options on Bitcoin exchange-traded products (ETPs).  The prospectus was originally filed with the US Securities and Exchange Commission (SEC) in January 2024.

According to the filing, the ETF will achieve its objectives by providing exposure to GBTC. Beyond that, it will also employ a covered call strategy. This means it will sell call options to generate income while holding Bitcoin or GBTC as collateral. 

“The fund seeks to achieve its investment objective primarily through actively managed exposure to Grayscale Bitcoin Trust (GBTC) and the purchase and sale of a combination of call and put option contracts that utilize GBTC as the reference asset,” the January filing read. 

James Seyffart, an ETF analyst at Bloomberg Intelligence, commented on the development. In his opinion, Grayscale is capitalizing on the approval for Bitcoin ETF options. 

“Grayscale wasting no time after BTC ETF options approval. They’ve filed an updated prospectus for their Bitcoin Covered Call ETF (no ticker yet). The fund will offer exposure to GBTC and BTC while writing and/or buying options contracts on Bitcoin ETPs for income,” Seyffart remarked.

It comes after the US Securities and Exchange Commission’s (SEC) approval of options trading for spot Bitcoin ETFs. This regulatory milestone, announced last month, allows ETF issuers to integrate options strategies into their Bitcoin-focused funds. Among other benefits, this opens up new avenues for investment. 

The Office of the Comptroller of the Currency (OCC) is also preparing to launch options trading on the Bitcoin ETF. Eric Balchunas, another ETF industry expert, emphasized the significance of the CFTC’s decision. He said it cleared the way for more complex Bitcoin investment products.

With options now on the table, funds like Grayscale’s Covered Call ETF can cater to investors seeking yield in a volatile asset class. 

Grayscale’s ETF Strategy on a Broader Context

Grayscale’s filing for the Covered Call ETF is part of its larger push to establish itself as a leader in crypto ETFs. In October, the SEC acknowledged Grayscale’s application to convert its Digital Large Cap Fund into an ETF, which demonstrated the company’s commitment to diversifying its offerings. 

Additionally, Grayscale has been working with NYSE Arca to secure approval to list a range of ETFs, including those focused on digital assets beyond Bitcoin. These efforts reflect the firm’s strategy to bring institutional-grade financial products to the cryptocurrency market. 

The ability to integrate options trading into Bitcoin ETFs could mark a turning point for the crypto industry. Covered call strategies, which involve selling options on held assets, allow funds to generate steady income — a feature that may attract a broader spectrum of investors. 

Grayscale’s swift response to these developments and push for a Bitcoin Covered Call ETF reflects its agility in navigating the growing regulatory environment. By filing an updated prospectus for its Bitcoin Covered Call ETF, the firm positions itself to take advantage of the growing interest in options-based crypto investments. 

If approved, the Bitcoin Covered Call ETF could pave the way for a new generation of investment products that merge TradFi strategies with novel digital assets. With regulatory frameworks beginning to accommodate such innovations, the crypto investment space is poised for significant growth.

Nevertheless, the firm’s Ethereum ETF remains affected by redemptions, evidenced by five consecutive days of outflows since November 12.

Tudor Investment Corporation, led by renowned hedge fund manager Paul Tudor Jones, has significantly increased its Bitcoin reserves.

A recent 13F filing with the Securities and Exchange Commission (SEC) revealed the firm held over 4.4 million shares in BlackRock’s iShares Bitcoin Trust ETF as of September 30, 2024. This jump from the 869,565 shares it reported back in June to 4.4 million is substantial.

Tudor Investment Corp Increases Holdings by 400%

In June, the holdings were worth around $160 million. By September’s end, this investment had grown to approximately $230 million. The rise reflects the additional shares purchased by the firm and Bitcoin’s ongoing bull run.

Paul Tudor Jones has consistently advocated for Bitcoin as a critical hedge against inflation. Increasing his firm’s stake in BlackRock’s Bitcoin ETF demonstrates growing confidence in Bitcoin’s long-term value. This move aligns with Jones’ earlier statements highlighting Bitcoin’s role in protecting wealth during uncertain economic times.

“Billionaire hedge fund manager Paul Tudor Jones: All roads lead to inflation … I’m long gold, I’m long Bitcoin, I’m long commodities,” crypto influencer Michael Burry said on X.

BlackRock, the world’s largest asset manager, continues driving institutional acceptance of cryptocurrencies. Its iShares Bitcoin Trust ETF provides a way for investors to access Bitcoin through a familiar and regulated product.

Institutional Interest on the Rise

Tudor’s investment comes as optimism builds around spot Bitcoin ETFs gaining approval in the United States. These ETFs, including BlackRock’s pending application, promise easier access to Bitcoin for traditional investors. If approved, they could open the floodgates for even more institutional participation.

“Microstrategy bought another 51,780 #Bitcoin Do you understand how crazy this is? MSTR bought more Bitcoin than Germany had in TOTAL earlier this year. @saylor is going to push Bitcoin to $100K on his own,” said Rajat Soni on X.

Other institutional players are also on the prowl. On November 18 alone, MARA Holdings announced $700 million in convertible notes to fuel their Bitcoin reserve, and mining firm MicroStrategy purchased $4.6 billion in BTC. It was also reported that crypto inflows surged to almost $2.2 billion last week.

By quadrupling its stake in BlackRock’s iShares Bitcoin Trust ETF, Tudor Investment Corporation has strengthened its position in the cryptocurrency market. As regulatory clarity improves and adoption grows, investments like these could signal the next big step in bridging traditional finance and digital assets.