According to CoinDesk , brokerage Bernstein said in a research report on Wednesday (19th) that Bitcoin (BTC) and cryptocurrency-related stocks are undervalued and the time is ripe for institutional adoption.
Bernstein pointed out that cryptocurrency bears believe that trading in Bitcoin spot ETFs is over, with most early allocations coming from retail investors , and most institutional demand being for "basis trading" rather than new net longs parts. Raoul Pal, CEO of macro research institution Real Vision, also said last week that about two-thirds of the net fund inflows of Bitcoin spot ETFs may come from arbitrage transactions, and retail investors are not yet the "key driver" of such fund products. .
Bernstein analysts Gautam Chhugani and Maihka Sapra wrote that while this is true, “we believe Bitcoin ETFs are on the verge of receiving approval from prime broker-dealers and large private banking platforms in Q3/Q4.”
Analysts say institutional basis trading appears to be a "Trojan horse for adoption," and these investors are now evaluating net-long positions as they become increasingly comfortable with improving ETF liquidity. Basis trading involves selling a Bitcoin futures contract while buying a Bitcoin spot ETF and then waiting for the price to converge.
The report expects Bitcoin ETF inflows to accelerate in the third and fourth quarters, with the next phase of adoption driven by large advisors approving ETFs and allocation headroom in existing portfolios.
Bernstein also predicts that Bitcoin prices will rise to cycle highs of around $200,000 by 2025, $500,000 by 2029, and $1 million by 2033.
In addition, Bernstein gave the U.S.-listed Bitcoin mining companies Riot Platforms and CleanSpark an "outperform" rating. The broker also gave software company MicroStrategy and trading platform Robinhood, which hold a large number of Bitcoins, an "outperform" rating. "Broad Market" rating.
Related reports: " Bernstein believes the bull market is not over yet and reiterates his prediction that Bitcoin will reach $150,000 next year "
