Spot bitcoin ETFs (exchange-traded funds) are expected to be approved by major financial firms and large private banks in the third and fourth quarters of this year, according to a report from Bernstein.
Bernstein predicts that bitcoin could peak at $200,000 in 2025, $500,000 in 2029, and $1 million in 2033.
Bitcoin and cryptocurrency-related stocks are currently undervalued and ready for institutional adoption, according to a Bernstein research report released Wednesday.
Institutional adoption on the horizon
Critics argue that bitcoin ETF spot trading has already peaked, mainly due to early investments from retail investors and institutional demand focused on “cash and carry basis trades” rather than new long positions.
However, Bernstein analysts Gautam Chhugani and Maihka Sapra believe that bitcoin ETFs are poised to gain approval from major financial firms and large private banks later this year. Spot bitcoin ETFs were first approved in the US in January, making it easier for more people to invest in bitcoin.
Institutional-based trading, where investors buy bitcoin ETFs spot and sell bitcoin futures contracts to profit from price differences, appears to be a key strategy for adoption. As ETF liquidity improves, these investors are now considering holding long-term positions in bitcoin.
Expected growth and approval
The report suggests that bitcoin ETF inflows will increase significantly in the third and fourth quarters. This growth will be driven by large financial advisors approving these ETFs and reallocating investments from existing portfolios.
Bernstein expects bitcoin to reach $200,000 in 2025, $500,000 in 2029, and $1 million in 2033.
The best options to invest
Bernstein has given an “outperform” rating to bitcoin miners such as Riot Platforms (RIOT) and CleanSpark (CLSK). The broker also rates the software company and bitcoin investor MicroStrategy (MSTR) and the trading platform Robinhood (HOOD) very highly.
In short, Bernstein sees a bright future for bitcoin and cryptocurrency-related stocks, driven by upcoming institutional adoption and ETF approvals.
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