Bernstein analysts: bitcoin-ETF approval will launch a bull market

Bernstein analysts believe the approval of the bitcoin-ETF will launch a bull market

According to analysts, for the first time in the history of cryptocurrencies, institutional investors have a chance to enter the market before the massive hype begins

Approval of bitcoin-ETF can act as a powerful catalyst to the beginning of a new bull cycle in the cryptocurrency market, according to analysts at Bernstein.

According to them, a positive decision from the US Securities and Exchange Commission (SEC) will give a green light to institutional investors to enter the digital asset market.

"For the first time in the history of cryptocurrencies, institutional investors have a chance to enter the market before the mass hype begins, and this is a positive factor for the entire industry," the report said.

Various ETFs, including gold, have trillions of dollars in assets under management. In the cryptocurrency community, it is generally accepted that even a small percentage of this capital can potentially impact the global crypto market. If spot bitcoin ETFs are approved, demand for the cryptocurrency will increase: buying shares in the funds involves the delivery of bitcoin as an underlying asset, i.e. its direct purchase in the market, affecting the exchange rate.

Bernstein analysts expect a bitcoin-ETF to be approved by January 2024 or "even earlier." In their opinion, the satisfaction of Grayscale's claim to the SEC and the statements of the head of Blackrock about the high demand of clients for cryptocurrency only confirm the thesis that the market of digital assets can move into a bullish phase in the very near future.

Specialists from Bloomberg Intelligence also believe that the SEC will approve the ETF in early January 2024 with a 90% probability. Last week, Google Trends data showed that the number of queries for the key phrase spot bitcoin ETF in international Google searches peaked, indicating maximum interest in the topic from regular users.