Wall Street’s top investment bank, Bernstein, stated that large institutions are expected to begin investing in Bitcoin spot ETFs in Q3 or Q4 of this year. This will bring a significant amount of capital to the ETF market and ultimately drive further increases in Bitcoin prices. Therefore, the current price should be considered a relatively low point in this bull market.
Summary:
Bitcoin funding rates have decreased, but open interest remains high. Matrixport believes that after a temporary decline, Bitcoin has the potential to reach new highs.
Background:
A list of 1,000 Bitcoin spot ETF buyers has been revealed, with a total investment of over $11.5 billion. Who are the top ten institutions?
Article Content:
Bernstein: Large institutions expected to enter Bitcoin spot ETFs in the second half of the year
Where is the bottom?
This bull market is still in its early stages.
After reaching a high of $65,722 on noon of the 19th, Bitcoin once again experienced a decline and then rebounded after reaching a low of $64,666 in the early hours of the 20th. At the time of writing, it is trading at $65,109, holding the $65,000 level.
BTC spot trend | Source: OKX
On the other hand, the buying performance of the US Bitcoin spot ETF is also not satisfactory. According to Sosovalue data, as of June 18th, funds have been flowing out for four consecutive days.
In a report on Tuesday (18th), the well-known Wall Street investment bank Bernstein also pointed out that with the release of the earlier 13F institutional holding report, analysts believe that the funds for Bitcoin spot ETFs are still mainly from retail investors, with institutional investors accounting for only 22% of the total.
Furthermore, 36% of institutional participation is mainly through “cash and carry arbitrage,” which means buying one Bitcoin while shorting one Bitcoin in the futures market to profit from the price difference, rather than purely bullish on Bitcoin.
Further reading:
BlackRock: 80% of Bitcoin spot ETF clients are “self-directed investors,” most investment advisors remain cautious.
Bernstein: Large institutions expected to enter Bitcoin spot ETFs in the second half of the year
However, Bernstein analysts Gautam Chhugani and Mahika Sapra also mentioned a positive factor, which is that large securities firms and private banks will officially include Bitcoin spot ETFs in their portfolios in the third or fourth quarter of this year.
In addition, new financial accounting standards will also stimulate corporate demand for Bitcoin.
Where is the bottom?
Given this, although Bitcoin spot ETFs have seen four consecutive days of fund outflows recently, Bernstein still expects that capital inflows will accelerate again soon. Investors should currently focus on buying opportunities at the low point of $60,000 and the high point of $50,000.
This bull market is still in its early stages.
Last week, Bernstein raised its target price for Bitcoin from $150,000 to $200,000 by the end of 2025 due to the significant demand brought by Bitcoin spot ETFs and the reduced miner output. They ultimately predict that Bitcoin will reach an unprecedented $500,000 by 2029 and touch the $1 million mark in 2033.
In Tuesday’s report, Bernstein not only reiterated these predictions but also added that Bitcoin’s current price range of $60,000 to $70,000 is still considered a low point in this bull market. Due to the potential buying demand from institutions, this bull market may still be in its early stages.
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List of 1,000 Bitcoin spot ETF buyers revealed: Total investment exceeds $11.5 billion, who are the top ten institutions?
BlackRock: 80% of Bitcoin spot ETF clients are “self-directed investors,” most investment advisors remain cautious.