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Bitcoin and Ether ETF Markets Expected to Grow to $450B: Bernstein

May 27, 2024
  • The bitcoin and ether ETF markets are expected to grow to $450 billion in total, the report said.
  • Bernstein said this suggests flows of more than $100 billion in the next two years into crypto ETFs.
  • The U.S. approval of an ether spot ETF has positive implications for rival tokens like solana, the broker said.
As an experienced financial analyst, I believe this recent development in the crypto market is a significant turning point. The expected growth of bitcoin and ether ETF markets to $450 billion is a testament to the increasing institutional adoption of digital assets. With flows of over $100 billion anticipated in the next two years, we could witness a new wave of investment in this space.According to a research report published by broker Bernstein on Tuesday, the markets for Bitcoin (BTC) and ether (ETH) exchange-traded funds are projected to expand to a size of approximately $450 billion based on our estimations of crypto prices.

Analysts Gautam Chhugani and Mahika Sapra predict that there will be inflows of more than $100 billion into crypto Exchange-Traded Funds (ETFs) within the next 18-24 months.

As an analyst, I would anticipate that Bitcoin’s cycle peak will reach approximately $150,000 by the year 2025. Furthermore, my year-end price projection stands at around $90,000.

Last week, Ether experienced a significant surge of approximately 26% in value following the SEC’s approval of the 19b-4 applications from eight different Ethereum spot ETF issuers in the United States. Once their S1 filings are given the green light, trading for these Ether exchange-traded funds (ETFs) will become available on various exchanges.

With ether now officially recognized as a commodity instead of a security, the major debate surrounding this cryptocurrency is considered resolved according to the report.

Bernstein points out that ether is the initial token based on the proof-of-stake consensus mechanism to gain approval as a spot Exchange-Traded Fund (ETF). This approval signifies an important step forward in the development of a blockchain asset, moving it beyond the stage of token sale.

The report noted that this development could have favorable consequences for other blockchain tokens, potentially leading them to adopt similar approaches. Solana (SOL) could potentially reap the benefits from such a trend.

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2024-05-28 15:16