Spot Bitcoin ETFs are on the cusp of gaining approval at major wirehouses, according to Bernstein analysts who maintain a bullish $200,000 Bitcoin target for the end of 2025.
What Happened: As reported by The Block, Bernstein analysts Gautam Chhugani and Mahika Sapra refuted the claims of Bitcoin bears who argue that the spot Bitcoin ETF trade has run its course.
The analysts concurred with recent 13F filings that revealed only 22% institutional participation in spot Bitcoin ETFs. They stressed, however, that these ETFs are on the verge of approval at major wirehouses and large private bank platforms in the third or fourth quarters of this year.
They also contended that the institutional basis trade is a “Trojan horse” for adoption, suggesting that these investors are now contemplating “net long” positions as they grow comfortable with the improving ETF liquidity.
Chhugani and Sapra underscored the growing adoption of Bitcoin as a treasury reserve asset, with new FASB guidelines facilitating corporations to hold the asset on their balance sheets.
The Bernstein analysts anticipate Bitcoin ETF inflows to pick up speed again in the latter half of the year, offering new entry levels before the next surge of institutional demand.
Despite the current four-day net outflow streak of U.S. spot Bitcoin ETFs totaling $714.4 million, they remain optimistic about a rebound in net inflows.
Last week, the Bernstein analysts upgraded their price target for Bitcoin to $200,000 from $150,000 by the end of 2025, propelled by expectations of unparalleled demand via the spot Bitcoin ETFs.
Why It Matters: Cryptocurrency traders have predicted that altcoins are in a high time frame (HTF) bottoming process, hinting at market shifts. This would align with the Bernstein analysts’ expectations of a resurgence in Bitcoin ETF inflows in the third or fourth quarters of 2024.
Bitcoin’s lackluster price performance in June further lends credibility to the analysts’ prediction of new entry levels before the next wave of institutional demand.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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