Market strategists from the brokerage firm Bernstein stated on Monday that U.S. spot ethereum exchange-traded funds (ETFs) might not attract the same demand as their bitcoin counterparts did this year. Analysts from the financial firm pointed out that the absence of staking could be a drawback, resulting in less spot conversion. Bernstein Analysts Highlight Tokenization […]
Bitcoin News
Bitcoin Spot ETFs Effect: Bernstein Analysts Revise BTC Target To $200,000, Here’s When
Analysts at global asset management firm Bernstein have revised their former Bitcoin target to 0,000, foreseeing the influx of Spot Bitcoin ETFs inflows catalyzing this massive price surge.
Bernstein Analysts Raise Bitcoin Target To 0,000
In a note to clients, Bernstein analysts, Gautam Chhugani and Mahika Sapra predicted that Bitcoin could reach 0,000 by the end of 2025. This new price target comes after analysts foresaw BTC hitting 0,000 earlier in May. At the time, the analysts disclosed that they anticipated about billion in inflows from Spot Bitcoin ETFs between 2024 and 2025.
Presently, the analysts have solidified their predictions, reiterating that Spot Bitcoin ETFs would be the trigger driving Bitcoin’s price to 0,000 next year. Analysts have estimated that Spot BTC ETFs could grow in demand to represent about 7% of the total BTC in circulation.
They disclosed their expectations for Spot Bitcoin ETFs to grow significantly in adoption, highlighting possibilities of approvals from major wirehouses and large private banking platforms in Q3 and Q4. The analysts also disclosed that almost 80% of Spot Bitcoin ETF inflows are generated by self-directed retail investors who invest through brokerage platforms.
They believe that institutional investors’ demand for Spot BTC ETFs is still in its early stages. However, as the market continues evolving institutional investors’ interest could rise, adding massively to the current inflows in Spot Bitcoin ETFs.
Bernstein analysts wrote in their notes to clients that currently around billion of net new flows have been brought in by ETFs combined. The cumulative inflows in Spot Bitcoin ETFs according to Farside data, have reached .66 billion since its launch on January 11.
Due to the high demand and massive capital pouring into this asset class, analysts expect Spot Bitcoin ETFs to be equivalent to 7% of BTC’s circulating supply by 2025 and 15% by 2033. They also anticipate Spot Bitcoin ETF’s total Assets Under Management (AuM) to reach 0 billion by ‘the 25E market peak and a whopping trillion by 2033.
This bullish prediction underscores the analyst’s confidence in Spot BTC ETFs, despite it being a newly discovered asset class. In less than six months, the total assets under management for Spot Bitcoin ETFs have grown to .19 billion, with an average expense ratio of 1.07%. This massive growth has been spearheaded by leading asset management companies like BlackRock, Fidelity and others.
BTC Price Enters Fresh Bull Cycle
In their note, Bernstein analysts also declared that BTC has officially entered a new bull market cycle. The analysts disclosed that this bull cycle is currently driven by the recent Bitcoin halving event, which took place on April 20.
They anticipate the rise of new catalysts that could trigger an increase in demand for BTC, propelling its price to new levels. In contrast, crypto analyst, Michael van de Poppe has predicted that BTC has likely reached its bottom between the price range of ,000 and ,000.
As of writing, the cryptocurrency is trading at ,865, reflecting a weekly decline of 4.76%. Poppe has suggested a potential reversal on the horizon, predicting that Bitcoin could find itself in upward momentum soon.
Bernstein Analysts Revise Bitcoin Target, $200,000 And $1 Million Become Main Focus
Bernstein analysts Gautam Chhugani and Mahika Sapra recently revised their price targets for Bitcoin in their latest market report, which also initiated coverage on MicroStrategy. These analysts also outlined factors that they believe could contribute to BTC’s exponential price surge.
Bitcoin To Hit 0,000 And Then Million
Chhugani and Sapra predicted in the report that BTC will rise to a cycle high of 0,000 by 2025 and that the flagship crypto will reach million by 2033. Bernstein had previously predicted that Bitcoin would reach 0,000 by 2025. However, these analysts have now revised their targets and alluded to the institutional demand for BTC as one of the reasons they believe the flagship crypto can reach such heights.
The research firm predicts that the Spot Bitcoin ETFs will continue to record impressive demand and that the Bitcoin under management could reach 0 billion by 2025, a significant increase from the billion in BTC that funds issuers already have under management.
In other words, these analysts expect BTC’s price to succumb to the supply and demand dynamics, considering that the Bitcoin in circulation is bound to drastically reduce as these Spot Bitcoin ETFs continue to accumulate a significant amount of the crypto token for their respective ETFs. Moreover, two Bitcoin halvings are set to occur before 2033, further reducing miners’ supply and thereby supporting their base case of BTC hitting million.
MicroStrategy To Benefit From BTC’s Growth
These Berstein analysts also initiated coverage on MicroStrategy with an outperform rating. They predict that the software company’s stock can rise to ,890 thanks to its BTC exposure. A rise to ,890 represents about a 95% increase for MicroStrategy’s stock, which is currently valued at around ,500.
The research firm noted that MicroStrategy has committed itself to “building the world’s largest Bitcoin company.” This has already paid off so far, with Chhugani and Sapra stating that the software company has transformed from a “small software company to the largest BTC holding company” since August 2020 (when it started accumulating BTC).
MicroStrategy already owns 1.1% of Bitcoin’s total supply, with holdings worth around .5 billion. The company’s BTC holdings are expected to increase soon enough, as they recently announced plans to offer 0 million of Convertible Senior Notes. Some of the proceeds from the proposed sale will be used to buy additional BTC.
Berstein highlighted how the company’s co-founder Michael Saylor has become synonymous with the Bitcoin brand and that the company’s position as the leading Bitcoin company has helped attract “at scale capital (both debt and equity) for an active Bitcoin acquisition strategy.” In dollar terms, Bernstein noted that MicroStrategy’s Bitcoin net asset value (NAV) per share “has grown nearly fourfold, surpassing the 2.4x growth in Bitcoin’s spot price.”
“We believe MSTR’s long term convertible debt strategy allows it enough time to gain from Bitcoin upside, with limited liquidation risk to its Bitcoin on balance sheet.” Chhugani and Sapra added.
Bullish Outlook: Target Price Of $90,000 For Bitcoin By Year’s End, According To Bernstein
Bitcoin (BTC), the largest cryptocurrency in the market, has experienced price volatility amid its struggle to consolidate above the crucial ,000 resistance line. Recent reports of the collapsed Mt.Gox exchange processing payouts to its creditors have added to the cautious sentiment.
However, wealth management firm Bernstein remains bullish, predicting significant growth in the Bitcoin ETF market and projecting higher price targets for BTC.
In addition, The Birb Nest’s technical analysis reinforces market optimism, highlighting key support levels and indicating positive sentiment.
Long-Term Bullish Outlook For Bitcoin
Despite its recent inability to breach the ,000 resistance level, Bitcoin remains well-positioned to surpass its all-time high of ,700 reached on March 14. Wealth management firm Bernstein predicts substantial growth in the Bitcoin ETF market, estimating it to reach a remarkable 0 billion.
The report also suggests that over 0 billion will flow into crypto ETFs within two years. Notably, these inflows into the ETF market are expected to be a significant price catalyst for BTC. The firm predicts a target price of ,000 for Bitcoin by the end of this year and a projected cycle high of 0,000 in 2025.
On the other hand, The Birb Nest, a trading firm, conducted a comprehensive technical analysis of the Bitcoin market and highlighted its share of bullish indicators for the Bitcoin price in the long run.
Bullish Indicators Reinforce Market Optimism
The analysis conducted by The Birb Nest shows that the 50-week and 200-week simple moving averages (SMAs) are at ,950 and ,358, respectively, reinforcing optimism in the market. In addition, the 7-week SPX correlation coefficient is currently at 0.36, which is a bullish sign for BTC.
The 200-day Bitcoin Production Cost (BPRO) trend support is ,580, while the 200-day SMA support is ,516. The Relative Strength Index (RSI) is at 59, indicating increased buying interest, although the 50-day Momentum is stalled at 49.
The Fear & Greed Index stands at 74, indicating “greed” and strong market optimism. However, according to the firm, caution is advised to avoid potential overextensions.
However, The Birb Nest notes that the Net Unrealized Profit and Loss (NUPL) indicator stands at 0.57, suggesting that a significant portion of the market is currently profitable, which could lead to increased selling pressure as investors capitalize on profits.
Currently, BTC is trading at ,900, down 3% from Monday’s price and over 3% in the past seven days, showing the cryptocurrency’s struggle to break above higher resistance levels, which are located at ,500 and ,000 on the BTC/USD daily chart.
Conversely, bulls must hold the next support levels for BTC at ,000, ,500, and ,800 to avoid a potential loss of the cryptocurrency’s key ,000 milestone.
Featured image from Shutterstock, chart from TradingView.com
Bernstein Predicts Crypto Arms Race Among Asset Managers
Global investment management and research firm Bernstein states that cryptocurrency is evolving into a substantial business opportunity for asset managers. With the recent decrease in the popularity of ESG (Environmental, Social, and Governance) funds, Bernstein notes that attention is expected to shift towards cryptocurrency as a significant driver of hypergrowth. According to Bernstein, there will […]
Bitcoin News
Bernstein Analysts Says Bitcoin Will Reach A New ATH By Year End, Here’s The Target
Analysts at financial services firm Bernstein are increasing their price expectations for Bitcoin. This follows a revised report in which they boosted their year-end target for the flagship crypto token’s price.
Bitcoin To Hit ,000 By The End Of 2024
According to a report by CoinDesk, Bernstein analysts Gautam Chhugani and Mahika Sapra have raised their year-end prediction for Bitcoin’s price from ,000 to ,000. Their research report cited the strong Spot Bitcoin ETF inflow and a record mining income as the reasons for this increased bullishness on BTC’s price.
Since launching, the Spot Bitcoin ETFs have recorded an impressive amount of inflows into their funds and have significantly contributed to an increase in BTC’s price. As such, it is understandable why these analysts believe they could still positively impact Bitcoin’s price in the long run.
Despite miners’ rewards being cut in half during the Halving event in mid-April, these Bernstein analysts also foresee a record mining income for BTC miners. They believe this would have a positive impact on BTC’s price. Bitcoinist recently reported that Bitcoin Halving could force some miners out of business, paving the way for the remaining miners to enjoy increased revenue.
Meanwhile, Chhugani and Sapra also recently reaffirmed their prediction that Bitcoin will hit 0,000 by mid-2025. They believe that the Spot Bitcoin ETFs will be one of many factors contributing to this massive price surge.
BTC Could Even Hit 0,000 This Year
Standard Chartered is another financial institution that revised its year-end target for Bitcoin’s price. As against their initial prediction of 0,000, they recently stated that Bitcoin could rise to 0,000 by the end of this year. Like Bernstein, Standard Chartered also alluded to the influence of the Bitcoin ETFs as the primary reason for their bullishness on Bitcoin.
The bank noted in the research report that these investment funds provide a more robust and sustainable positioning for Bitcoin, unlike when the crypto token hit new highs solely based on speculations. Standard Chartered also predicts that BTC could rise to 0,000 by the end of 2025.
Interstingly, they added that an “overshoot to 0,000 is likely at some point in 2025 if ETF inflows continue apace and reserve managers buy BTC.” These predictions, however, look conservative when one considers Samson Mow’s prediction that BTC could hit million this year.
At the time of writing, Bitcoin is trading at around ,200, down over 1% in the last 24 hours, according to data from CoinMarketCap.
Bernstein Analysts Convinced Bitcoin Is Headed For $150,000, Here’s Why
Analysts from private wealth management firm, Bernstein have reaffirmed their previous Bitcoin prediction, emphasizing that the cryptocurrency has a greater chance to reach 0,000 by 2025.
Bitcoin 0,000 Price Forecast Grows Stronger
Bernstein analysts Gautam Chhugani and Mahika Sapra said in a note to clients on Monday that they were now more convinced of Bitcoin’s exponential surge to new all-time highs at around 0,000 by mid-2025. The analyst’s statements were a reiteration of their earlier Bitcoin forecast in November 2023, when they predicted the price of Bitcoin to surge to 0,000.
At the time, Bitcoin was trading around a price of ,000, putting the analysts’ estimate at around five times the price of BTC. Now with BTC recently witnessing remarkable surges to new all time highs above ,000, and potentially continuing its upward momentum, Bernstein analysts’ forecast seems more probable.
Analysts from the private wealth investment firm have disclosed several factors that could trigger BTC’s bullish momentum. Highlighting the success and surging demand for Spot Bitcoin Exchange Traded Funds (ETF), the company boldly affirmed that large volume of inflows into Spot Bitcoin ETFs could significantly contribute towards increasing the value of BTC.
“We estimated billion inflows for 2024 and another billion for 2025. In the last 40 trading days since the ETF launch on Jan 10, Bitcoin ETF inflows have crossed .5 billion already,” Bernstein analysts wrote.
Sharing the sentiment of most crypto analysts in the market, Bernstein analysts believe that the price of BTC could experience a fresh “break out” after the halving event in April 2024. At the time of writing, the cryptocurrency is trading at ,218, witnessing a slight price correction of about 6.96% in the past 24 hours, according to CoinMarketCap.
Miners To Become Top Beneficiaries Of BTC Surge
In their note, Bernstein analysts highlighted that investing in Bitcoin miners could be the best equity proxy to BTC. According to their analysis, BTC miners typically outperform during BTC bullish cycles and conversely underperform during bearish periods.
As Bitcoin rapidly rises to all time highs above ,000, Bernstein analysts expect that institutional interest in Bitcoin related equities could top over, with BTC miners becoming one of the largest beneficiaries. Despite various analysts predicting that the next Bitcoin halving could potentially become a death sentence to small mining companies and solo miners, Bernstein analysts have revealed that the rising price of BTC and elevated transaction fees could serve as a cushioning mechanism for miners during the halving period.
SEC’s Spot Bitcoin ETF Approval Looking Like ‘a Done Deal’ in January, Says Bernstein
Global asset management firm Alliancebernstein’s research arm expects the U.S. Securities and Exchange Commission (SEC) to approve its first spot bitcoin exchange-traded fund (ETF) in early January 2024. Noting that the regulator “has been actively responding with edits/comments on the ETF applications,” the firm’s analysts said: “The probability of an approval by the Jan. 10 due date looks highly likely.”
Spot Bitcoin ETF Approval ‘Highly Likely’ in January
Bernstein Research, a subsidiary of global asset management firm Alliancebernstein, expects the U.S. Securities and Exchange Commission (SEC) to approve its first spot bitcoin exchange-traded fund (ETF) in January next year. A memo from Bernstein Research sent to Thestreetcrypto reads:
A bitcoin ETF in early Jan is now looking like a ‘done deal.’
The memo explains that the market was waiting to see if the SEC would “appeal against the Grayscale verdict.” The largest crypto asset manager, Grayscale Investments, is seeking to convert its bitcoin trust (GBTC) into a spot bitcoin ETF. The SEC initially rejected the application but the court later ruled in favor of the crypto firm and ordered the securities regulator to reevaluate its application.
“Now that SEC has chosen not to appeal, and actually, has been actively responding with edits/comments on the ETF applications, the probability of an approval by the Jan. 10 due date looks highly likely,” the Bernstein Research memo details.
According to SEC Chairman Gary Gensler, the securities watchdog is considering eight to 10 spot bitcoin ETF applications. Based on public records, there are 12 spot bitcoin ETF applications pending review at the SEC, including Grayscale’s application to covert GBTC into a spot bitcoin ETF.
Other applicants include Cathie Wood’s ARK Investment Management, Blackrock, Bitwise, Wisdomtree, Fidelity, Vaneck, and Invesco. Eight applications have the latest possible review dates in the first quarter of next year, and three have the latest review dates in the second quarter.
Some analysts, including those at JPMorgan, are expecting the SEC to approve multiple spot bitcoin ETFs at once. Last week, the price of bitcoin surged on speculation that Blackrock, the world’s largest asset manager, is close to launching its spot bitcoin ETF.
Do you think the SEC will approve its first spot bitcoin ETF in January next year? Let us know in the comments section below.
Bernstein: Crypto Funds Poised for 13x Growth: From $50B to $650B in 5 Years
Bitcoin and crypto asset funds currently represent a niche market with an estimated worth of billion, as highlighted by Bernstein Research. Yet, under the leadership of Gautam Chhugani, Bernstein’s team of analysts anticipates these funds may oversee between “0-650 billion of assets” in the coming five years.
0B Horizon: Bernstein Envisions Massive Growth in Crypto Funds
Over the next five years, the crypto fund management industry could see significant growth, according to Bernstein analysts. Led by Chhugani, Bernstein’s team currently values the sector at billion, describing it as a “cottage industry.” However, they anticipate it will transform into a regulated asset management industry, managing “0-650 billion of assets” within five years.
One reason is they believe regulatory challenges will diminish. “The meat of regulatory backlash is done for now, and the Coinbase case will provide further clarity,” said the Bernstein team in a note to investors on Monday. Another reason is the chances of a U.S. spot bitcoin exchange-traded fund (ETF) approval by early 2024 “has significantly increased.”
Chhugani’s team believes the U.S. Securities and Exchange Commission (SEC) will find a middle ground when approving a spot bitcoin ETF rather than “inventing another reason” to deny these funds. Furthermore, the analysts see an “opportunity in stablecoins” when they move from an unregulated environment to a regulated system geared toward “mainstream payments.”
In 2023, over half a dozen companies, including Blackrock, Franklin Templeton and Fidelity, have applied for a spot bitcoin ETF. Coinshares recently introduced a new crypto hedge fund division and expanded its institutional services to the U.S. Meanwhile, Nomura’s Laser Digital, a Japanese financial holding company, launched a bitcoin adoption fund targeting institutional investors. Grayscale Investments recently applied for an ethereum futures ETF with the U.S. securities regulator.
What’s your take on the forecast emerging from Bernstein Research? Share your thoughts and opinions about this subject in the comments section below.
Bernstein Predicts Spot ETFs Could Claim 10% Of Bitcoin’s Market If Greenlit
According to Bloomberg, a recent research report from Sanford C. Bernstein has shed light on the potential impact of Exchange Traded Funds (ETFs) on the Bitcoin market dynamics.
Potential Surge In Bitcoin Market Value
Sanford C. Bernstein’s research indicates that should the US green-light a fund investing directly in spot Bitcoin, ETFs could constitute roughly 10% of Bitcoin’s market value within the next three years.
Such a shift could amplify Bitcoin’s presence in traditional financial portfolios and potentially foster more significant institutional adoption.
According to Bloomberg, Gautam Chhugani, an analyst at Bernstein, highlighted the rising probability of a spot Bitcoin ETF in the report.
In a separate report, this same analyst had recently disclosed that the SEC believes that a Bitcoin Spot ETF may be “unreliable” since crypto exchanges (such as Coinbase) aren’t under their oversight, leading to concerns about potential price manipulation and unreliability.
While the speculation on the SEC approval of a Spot Bitcoin ETF continues, with the Grayscale Bitcoin Trust currently holding about 4% of all Bitcoin, according to Bloomberg, a direct investment, ETF could more than double this figure, potentially aiding the growth of the crypto investment landscape.
The “Growth Flywheel” Effect
Once regulatory approval is in place, Bernstein anticipates a “growth flywheel” effect propelled by retail and other institutional inflows. Such a cascade effect would be reminiscent of other financial markets where introducing new financial products spurred fresh investments and liquidity waves.
Notably, to understand the significance of this, one only needs to consider the broader ETF market’s growth trajectory. Since their inception, ETFs have grown exponentially, with assets under management surging across various sectors and asset classes.
Introducing a Spot Bitcoin ETF would mean integrating a highly liquid, decentralized, and increasingly accepted asset into this mix, further validating Bitcoin’s place in the financial ecosystem.
Meanwhile, Bitcoin’s price is struggling to break above the ,000 mark after slipping below that price range last week. As of this writing, the asset trades at ,623, recording a slight increase of 0.5% over the past 24 hours.
Alongside its struggling price, BTC’s market capitalization has increased by more than billion in just the past week. The asset market cap has surged from a high of 0 billion earlier last week to a current cap of 3 billion.
The top crypto’s trading volume has also followed closely with its surging market cap and has seen a significant spike from last week’s daily trading volume. Bitcoin’s 24-hour trading volume currently stands at .3 billion compared to a lesser volume of .7 billion last Monday.
Featured image from iStock, Chart from TradingView