Spot Bitcoin ETFs Approval Expected at Wirehouses, Bernstein Maintains $200,000 Target for 2025
Crypto News- In the ongoing saga of the spot Bitcoin ETF debate, Bernstein analysts reveal crucial insights that debunk bearish sentiments. While critics argue that the spot Bitcoin ETF trade has reached its peak, analysts at Bernstein beg to differ, pinpointing two pivotal factors.
According to Gautam Chhugani and Mahika Sapra of Bernstein, detractors overlook the imminent approval of spot Bitcoin ETFs at major wirehouses and large private bank platforms, slated for either Q3 or Q4 of this year. Their assertions echo recent sentiments from industry experts like Bloomberg ETF analyst Eric Balchunas and Bitwise CIO Matt Hougan.
Bernstein Analysts: Institutional Basis Trade as Catalyst for Broader Adoption
The Bernstein analysts acknowledge the prevalence of the institutional basis trade, wherein investors exploit the price disparity between spot Bitcoin ETFs and CME bitcoin futures contracts. Yet, they assert that this tactic merely serves as a precursor to broader institutional adoption, with investors gradually transitioning towards ‘net long’ positions as ETF liquidity improves.
Moreover, Bernstein highlights the expanding role of bitcoin as a treasury reserve asset, bolstered by new FASB guidelines facilitating corporate holdings. This, coupled with growing corporate interest exemplified by entities like MicroStrategy and bitcoin miners, is poised to drive fresh demand in 2024.
Contrary to recent outflows from U.S. spot Bitcoin ETFs, totaling $714.4 million over four days, Bernstein anticipates a resurgence in net inflows, particularly in Q3/Q4. They view the current market turbulence as an opportune entry point, reaffirming their bullish stance with a revised price target of $200,000 by 2025, eventually eyeing $500,000 by 2029 and a staggering $1 million by 2033.
Bernstein: Institutional Visibility Marks the Dawn of a New Crypto Era
Emphasizing the paradigm shift in institutional visibility and marketing efforts, Bernstein contends that we’re witnessing only the beginning of a transformative cycle. Asset managers, with a keen eye on the burgeoning crypto market potentially worth $80-100 billion, are poised to intensify their marketing and distribution strategies, further propelling Bitcoin’s ascent.
Despite a notable 53% rally since the year’s inception, Bernstein suggests that it’s still early days for Bitcoin, with institutional demand fueled by ETFs and astute marketing poised to fuel unprecedented growth in the coming years.
Frequently Asked Questions (FAQs)
What are Bernstein analysts revealing about the Bitcoin ETF debate?
Bernstein analysts are providing insights that challenge bearish sentiments surrounding the Bitcoin ETF trade, highlighting significant factors that indicate its continued growth potential.
What are the key factors pinpointed by Bernstein analysts regarding the Bitcoin ETF trade?
According to Gautam Chhugani and Mahika Sapra of Bernstein, two pivotal factors are crucial to consider: the imminent approval of spot Bitcoin ETFs at major wirehouses and large private bank platforms, and the prevalence of the institutional basis trade.
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