Asset management company Bernstein stated in its latest report that the approval of a spot Bitcoin ETF could help initiate a new powerful crypto cycle. The report highlighted the influx of fresh stablecoin supply, tokenization of traditional assets, tokenization of local crypto infrastructure, and the future potential of ETFs.
SEC’s Approval of Spot Bitcoin ETF Could Trigger a New Crypto Cycle
In its latest report, Bernstein mentioned that crypto-based exchange-traded funds (ETFs) would not only attract capital to the market by creating demand in the spot market but also serve as a growth mechanism for individual and institutional capital seeking compliance with regulations by offering regulatory approval.
Analysts led by Gautam Chhugani noted in the report, “The interest of leading global asset management companies in spot Bitcoin (BTC) ETFs, along with the potential mechanisms developed to address the objections of the U.S. Securities and Exchange Commission (SEC), increases the likelihood of approval.” Analysts expect significant growth in the spot Bitcoin ETF market, with Bitcoin’s market value reaching 10% within two to three years.
The report also noted that crypto-based spot ETFs would benefit from a strong brand marketing move by leading global asset management companies and portfolio distribution moves by individual brokers and financial advisors.
Potential Trend of New Capital Entry into the Market
Bernstein argues that a new powerful crypto cycle will begin with the influx of fresh capital from stablecoin supply, tokenization of traditional assets, tokenization of local crypto infrastructure, and ETFs. The report highlights the potential by stating, “Assets on the chain remained in the range of $40 billion this year, and circulating stablecoins are around $120 billion.”
Last week, the U.S. federal regulatory agency SEC, which postponed Ark Investment‘s 21Shares spot Bitcoin ETF application, continues to review applications made by traditional finance heavyweights such as BlackRock and Fidelity Investments.
