Bernstein: Bitcoin ETF Odds Rise

Mon, 08/14/2023 - 15:55
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According to a recent research report by Bernstein, the prospects for a spot Bitcoin ETF approval in the U.S. has grown more promising.

If greenlit, exchange-traded funds may represent up to a tenth of the flagship cryptocurrency's market value within the next three years.

Analyst Gautam Chhugan highlighted that the Grayscale Bitcoin Trust currently accounts for approximately 4% of all outstanding Bitcoin.

Bernstein posits that regulatory approval might trigger growth momentum, drawing more retail and institutional investors into the crypto sphere.

This optimism comes even as the U.S. Securities and Exchange Commission (SEC) recently postponed its decision on the ARK 21Shares Bitcoin ETF application, causing the crypto community to linger in anticipation. The ARK proposal is just one of many, with major firms like BlackRock and Fidelity jockeying to introduce a spot Bitcoin ETF – a product that directly tracks Bitcoin's price.

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Such a fund, many believe, could bolster institutional Bitcoin investments and subsequently elevate its price. Yet, not everyone shares this sentiment.

However, as reported by U.Today, prominent trader Peter Brandt predicts the impact of a Bitcoin ETF will be negligible, contrary to dominant industry perspectives.

Amid the heightened interest, regulatory hurdles persist. The SEC has historically rejected Bitcoin ETF applications, citing inadequate measures against fraud and manipulation on crypto trading platforms. However, there seems to be a shift as recent applications have included new provisions aimed at addressing these concerns.

Matrixport, a crypto services provider, presented a more bullish forecast in a recent report, expecting the SEC to greenlight several spot Bitcoin ETFs in succession, potentially propelling the next Bitcoin rally. They stress the significant marketing investment ETF providers are likely to deploy in order to pull in both retail and institutional capital.