The analysis by Bernstein analysts paints a bullish picture for Bitcoin, particularly emphasizing the potential approval of spot Bitcoin ETFs by major financial institutions. They maintain a strong outlook, projecting Bitcoin to reach $200,000 by the end of 2025, up from their previous target of $150,000.
Despite current figures showing only 22% institutional participation in spot Bitcoin ETFs, Bernstein sees this as a precursor to broader adoption. They suggest that institutions are gradually shifting towards “net long” positions as they become more comfortable with the improved liquidity of these ETFs.
The analysts highlight regulatory advancements as a significant factor driving institutional confidence. They anticipate approvals for spot Bitcoin ETFs at major wirehouses and private bank platforms in the third or fourth quarters of 2024, which they believe will further bolster Bitcoin’s legitimacy as an investable asset.
Moreover, Bernstein points to Bitcoin’s growing role as a treasury reserve asset, facilitated by new FASB guidelines allowing corporations to hold Bitcoin on their balance sheets. This trend, they argue, will contribute to sustained demand and potential price appreciation over the long term.
Despite recent net outflows totaling $714.4 million from U.S. spot Bitcoin ETFs, Bernstein remains optimistic about a rebound in inflows. They predict that ETF activity will pick up momentum in the latter half of the year, potentially offering new entry points for investors looking to capitalize on Bitcoin’s anticipated resurgence.
Overall, Bernstein’s upgraded price target and positive outlook underscore their belief in Bitcoin’s continued evolution within institutional portfolios and corporate finance strategies. They view the pending approvals of spot Bitcoin ETFs and supportive regulatory developments as key drivers that could propel Bitcoin towards their ambitious price target of $200,000 by 2025.