According to a report by CoinDesk, brokerage firm Bernstein stated in a research report on Wednesday that Bitcoin (BTC) and cryptocurrency-related stocks are undervalued, and the timing for institutional adoption is ripe.
Bernstein pointed out that cryptocurrency bears believe that the trading of Bitcoin spot ETFs has ended, with most early allocations coming from retail investors, and that the majority of institutional demand is for “arbitrage trading” rather than new net long positions. Raoul Pal, CEO of macro research firm Real Vision, also stated last week that about two-thirds of net inflows into Bitcoin spot ETFs could be from arbitrage trading, and retail investors are not yet the “key driving factor” for such fund products.
Analysts Gautam Chhugani and Maihka Sapra from Bernstein wrote, “While this is true, we believe that Bitcoin ETFs will likely gain approval from major broker-dealers and large private banking platforms in the third/fourth quarter.”
The analysts stated that institutional arbitrage trading seems to be a “Trojan horse of adoption,” and these investors are currently evaluating net long positions as they become increasingly satisfied with ETF liquidity. Arbitrage trading involves buying Bitcoin spot ETFs while selling Bitcoin futures contracts, and then waiting for the prices to converge.
The report expects an acceleration of fund inflows into Bitcoin ETFs in the third and fourth quarters, with the next phase of adoption driven by large advisors approving ETFs and allocating excesses from existing portfolios.
Bernstein also predicts that the price of Bitcoin will reach a cycle high of around $200,000 by 2025, $500,000 by 2029, and $1 million by 2033.
Additionally, Bernstein gave “outperform” ratings to Bitcoin mining companies Riot Platforms and CleanSpark, which are listed in the United States, and also gave “outperform” ratings to software company MicroStrategy and trading platform Robinhood, both of which hold a significant amount of Bitcoin.
Related report: “Bernstein believes the bull market is not over, reiterates the $150,000 Bitcoin prediction for next year.”
Successful Conclusion of CoinEx Taiwan’s 7th Anniversary Celebration, Embracing the Arrival of the Web3 Era Hand in Hand with Users
Since its establishment in 2017, CoinEx has been a professional cryptocurrency trading pla…