US-based asset management company Bernstein highlighted in its latest report that the largest cryptocurrency, Bitcoin, is gearing up for an unprecedented rally in the crypto market. The report emphasizes that the recent court decision in favor of Grayscale Investment in a case against the US Securities and Exchange Commission (SEC) has laid the groundwork for this surge. Unlike previous rallies driven primarily by individual investors, the company noted that this time institutional investors are expected to lead the rally. Bernstein attributes this to a slower but more solid accumulation, increased regulatory clarity, and a more strategic flow from long-term institutional investors.
Despite showing weak price movements despite several positive catalysts in recent weeks, Gautam Chhugani, an analyst at Bernstein, argues that the market’s lack of a sudden reaction should not be seen as a failure in progress. Last week, following the positive court decision in favor of Grayscale Investment, the largest cryptocurrency briefly surpassed $28,000, but the gains made in this surge were short-lived, and the crypto king fell back below $26,000.
Increasing Probability of Approval for Spot Bitcoin ETF
Steven McClurg, CIO of Valkyrie, commented on the race for a spot Bitcoin ETF, stating that the US federal regulator SEC is more than 50% likely to give the green light to at least one spot Bitcoin ETF this year.
This development comes after the SEC’s decision to delay the rulings on spot Bitcoin ETF applications made by leading companies such as Blackrock, Valkyrie, WisdomTree, and Invesco. The next deadlines for these decisions are October 16 and 17, and industry observers are eagerly awaiting the SEC’s next move.
Furthermore, Bernstein predicts that if approved, a spot Bitcoin ETF could increase the total market value of the cryptocurrency market by up to 10% within the next three years.
