Tom Lee Predicts Ethereum Could Reach $60,000 Amid Institutional Demand

Tom Lee, the head of research at Fundstrat and chairman of Bitmain, has predicted that Ethereum (ETH) could reach a new all-time high this year and potentially climb to $60,000 within the next few years. In an interview with Coinage, Lee discussed Ethereum’s recent price performance, institutional demand, tokenization, and the broader crypto market. Despite the Federal Reserve raising interest rates in September, Ethereum rose about 80% from its June low near $1,500 to around $2,700 by late September.

Lee expects Ethereum to break its previous record and move above $5,000 before the end of the year. He also suggested that Ethereum could reach around $3,000 in the near term. Lee’s estimate is based partly on Ethereum’s previous price cycles, such as its rise from below $100 at the end of 2018 to nearly $4,900 in 2021. He believes a similar large move following a long period of consolidation could push ETH to $60,000.

Institutional demand for Ethereum has also increased, with US spot Ether exchange-traded funds (ETFs) recording $162.2 million in inflows on September 22. BlackRock’s Ethereum fund accounted for $88.1 million, while Fidelity’s fund added $33.6 million. Lee noted that the current crypto cycle could attract a broader group of investors than previous cycles, driven by factors such as tokenization, changes in crypto regulation, and the growing use of blockchain technology by financial companies.

Lee highlighted the potential for tokenization to increase Ethereum use, citing the Securities and Exchange Commission’s innovation exemption on September 17, which allows certain tokenized versions of US-listed stocks to trade on blockchain networks. He also mentioned Robinhood’s decision to build its Robinhood Chain on Ethereum, bringing in $2.1 billion in tokenized assets during its first two months. Lee argued that Ethereum’s security and liquidity make it an attractive platform for such applications.