LMAX CEO Expects Bitcoin to Trade in Six Digits in the Future

The chief executive of LMAX Group sayshe expects bitcoin to trade in six digits in the future. He explained that based solely on supply and demand, with bitcoin allocation potentially reaching 3%-5% of global assets, “you should see the price of bitcoin being multiples of what it is today.”

‘This Democratizes the Asset Class for Everyone’

LMAX Group‘s CEO, David Mercer, discussed bitcoin’s future and the influence of surging demand for spot bitcoin exchange-traded funds (ETFs) in a recent interview with CNBC. LMAX Group is a global financial technology company and a leading independent operator of multiple institutional execution venues for FX and cryptocurrency trading.

Mercer explained that if BTC becomes a standard portfolio allocation, with “3%, 5% of people‘s portfolios or the assets in the world being allocated to bitcoin,” we’d see a dramatic price increase. “Based purely on supply and demand — and weve never seen anything like this before,” he stated:

You should see the price of bitcoin being multiples of what it is today … I do think in a longer time horizon — five years, 10 years — then certainly this will be trading in six digits, rather than five digits as it is today.

Commenting on the impact of spot bitcoin ETFs and the subsequent appetite for crypto, he shared: “If you look at all the institutions we cover — within the group, we trade with 35 of the world‘s top 40 banks, all the major proprietary trading firms in the world, over 200 brokers — the group that we’ve excluded historically have been the banks.”

He added. “They could trade the futures but they couldn‘t trade the physical. What you’re seeing now is the underlying for these ETFs is the physical.” The executive elaborated:

I think overall this democratizes the asset class for everyone. It opens up market access from retail all the way up to institutional.

“It means that even the high net worth desks, the private wealth desks in banks, can now offer product which gives you direct exposure to the asset class,” the LMAX chief executive continued. “I think over time as all the institutions become more comfortable with the behavior of the asset class, youre going to see people getting closer to the asset itself and owning the core asset, which is bitcoin or ethereum or solana.”

Meanwhile, a number of people are increasingly bullish on bitcoin, predicting significant price hikes post the upcoming halving. Standard Chartered Bank, for example, raised its BTC price prediction for this year from $100K to $150K. Bitwises CIO said that in the long term, his firm believes that bitcoin is in a “raging bull market.”