Share this article
Bitcoin Spot ETF Approval Could Help Power up a New Crypto Cycle: Bernstein
New capital will enter the market from fresh stablecoin supply, tokenization of traditional assets, native crypto infrastructure tokenization and ETFs, the report said.
Updated Aug 15, 2023, 3:14 p.m. Published Aug 14, 2023, 10:08 a.m.
Make us preferred on Google
Crypto exchange-traded-funds (ETFs) add capital to the market not just by creating demand in the spot market, but the market signal of regulatory approval of these products produces a growth flywheel for retail and other institutional flows that are seeking legitimacy, broker Bernstein said in a report Monday.
“With the interest of leading global asset managers in bitcoin spot ETFs and potential mechanisms to address the U.S. Securities and Exchange Commission (SEC) objections, the probability of approval has risen,” analysts led by Gautam Chhugani wrote.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Bernstein expects a spot bitcoin ETF market to be sizable, reaching 10% of bitcoin’s market cap in two to three years.
The SEC extended its review of the Ark 21Shares bitcoin ETF application on Friday, as the regulator continues to assess applications from traditional finance heavyweights such as BlackRock (BLK) and Fidelity Investments.
Cryptocurrency ETF’s will benefit from a “strong brand marketing push by leading global asset managers,” and a “distribution push from retail brokers and financial advisors,” the note said.
The broker says new capital to power up a new crypto cycle will come from fresh stablecoin supply, tokenization of traditional assets, native crypto infrastructure tokenization and ETFs.
“On-chain assets have been stuck in a $40b range this year, and stablecoins in circulation at around $120b,” the report added.
Read more: SEC Likely to Approve Several Spot ETFs, Sparking Next Bitcoin Rally: Matrixport
More For You
Accelerating Convergence Between Traditional and On-Chain Finance in 2026?
Commissioned bySociete Generale-FORGE
More For You
Ark Invest's Cathie Wood says bitcoin will thrive amid ‘deflationary chaos’ created by AI and innovation
Exponential tech will force down prices and stress legacy finance, for which bitcoin offers a trustless alternative, said Wood at Bitcoin Investor Week.
What to know:
- Cathie Wood argues that bitcoin is a hedge not only against inflation but also against a coming wave of technology-driven, productivity-led deflation.
- She says rapid cost declines in artificial intelligence and other exponential technologies will trigger "deflationary chaos" that traditional financial institutions and the Federal Reserve are unprepared for.
- In her view, bitcoin’s decentralized design and fixed supply make it a safer alternative to fragile, debt-based financial systems that could be strained by deflation and disrupted business models.
Top Stories
