Bitcoin and other cryptocurrencies are becoming more appealing to institutional investors, according to a recent report by brokerage firm Bernstein. The report suggests that there is still significant potential for institutional adoption of Bitcoin and crypto-related stocks.
While some critics argue that the hype around spot bitcoin ETFs has died down and that early investors were mainly retail traders, Bernstein believes that major wirehouses and private banks will soon approve spot bitcoin ETFs in the third and fourth quarters of this year. This approval could open up access to Bitcoin for a wider range of investors, potentially driving up demand.
The report also highlights the growing interest in the “basis cash and carry trade” among institutional investors. This strategy involves buying the spot bitcoin ETF and selling bitcoin futures contracts simultaneously, with the expectation that prices will eventually converge. As institutional investors become more comfortable with ETF liquidity, they may start to explore more net long positions in Bitcoin.
In terms of price predictions, Bernstein forecasts that Bitcoin could reach a cycle high of $200,000 by 2025, $500,000 by 2029, and even $1 million by 2033. These optimistic projections suggest that there is still plenty of room for growth in the cryptocurrency market.
Bernstein has given outperform ratings to several Bitcoin-related companies, including Riot Platforms, CleanSpark, MicroStrategy, and Robinhood. These ratings indicate that Bernstein believes these companies have strong potential for growth and could benefit from the increasing institutional interest in Bitcoin.
Overall, the report from Bernstein paints a positive picture of the future of Bitcoin and crypto stocks, suggesting that institutional adoption could be a significant driver of growth in the coming years. With major wirehouses and private banks expected to approve spot bitcoin ETFs soon, the cryptocurrency market could be on the verge of a new wave of institutional investment.