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

Crypto ETFs could see over $100 billion of inflows in the next two years, the report said.

Updated May 29, 2024, 4:50 p.m. Published May 28, 2024, 12:07 p.m.
Scrabble tiles spelling out "ETF GROWTH"
Bitcoin and Ether ETF Market Expected to Grow to $450B: Bernstein. (viarami/Pixabay)
  • 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.

Bitcoin and ether exchange-traded funds are expected to grow to a $450 billion market based on our crypto price forecasts, broker Bernstein said in a research report on Tuesday.

“This would signify flows exceeding $100 billion over the next 18-24 months into crypto ETFs,” analysts Gautam Chhugani and Mahika Sapra wrote.

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The broker predicts a bitcoin cycle high of $150,000 in 2025, and has a year-end price target of $90,000.

Ether gained about 26% last week after the U.S. Securities and Exchange Commission approved the 19b-4 filings of eight spot ETH ETF issuers. Once the S1 filings are approved ether ETF trading will go live on exchanges.

Now that ether has been classified a commodity and not a security, the “biggest controversy” surrounding the cryptocurrency has been settled, the report said.

Bernstein notes that ether is the first proof-of-stake based token to be approved as a spot ETF and its approval “paves the way for a blockchain asset to evolve from a token sale.

”This has positive implications for other blockchain tokens, as they may follow the same precedent, and solana could benefit," the report added.

Read more: Ether Spot ETF Approval Would Raise Expectations Solana Could Also Be Classified as a Commodity: Bernstein

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