- Bitcoin and crypto-related stocks are expected to see increased institutional adoption, with Bernstein predicting spot bitcoin ETF approvals on major platforms in Q3/Q4.
- The report forecasts bitcoin prices to potentially reach $1 million by 2033 and identifies undervalued stocks like Riot Platforms, CleanSpark, MicroStrategy, and Robinhood as prime for investment.
In a recent research report, Bernstein highlights the significant potential for bitcoin and crypto-related stocks to attract institutional investors, marking a new phase in the cryptocurrency market’s evolution.
Institutional Adoption of Crypto Imminent
Bernstein, a leading broker, has issued a bullish forecast on the future of cryptocurrencies, particularly focusing on bitcoin (BTC) and its derivatives. According to analysts Gautam Chhugani and Maihka Sapra, the market is on the verge of a substantial uptick in institutional adoption. They predict that spot bitcoin ETFs will soon receive approval on major wirehouse and large private bank platforms in the third and fourth quarters of this year. This development is expected to expand access to bitcoin dramatically, potentially altering the investment landscape.
The report emphasizes that despite initial skepticism, the early spot bitcoin ETF allocations have predominantly come from retail investors. However, Bernstein sees this as the first step towards broader institutional adoption. They note that while institutions initially favored the “basis cash and carry trade,” where investors simultaneously buy the spot bitcoin ETF and sell bitcoin futures, the demand for direct exposure is increasing.
Bitcoin Price Projections
Bernstein’s forecast for bitcoin’s price trajectory is equally optimistic. They anticipate bitcoin to reach a cycle high of $200,000 by 2025, $500,000 by 2029, and a staggering $1 million by 2033. This bullish outlook is underpinned by growing institutional interest and the expectation of further ETF approvals.
Crypto-Linked Stocks Underrated
In addition to bitcoin, Bernstein also identifies several crypto-linked stocks as undervalued and ripe for institutional adoption. The broker has an outperform rating on bitcoin miners Riot Platforms (RIOT) and CleanSpark (CLSK), as well as software company and bitcoin acquirer MicroStrategy (MSTR) and trading platform Robinhood (HOOD).
According to the analysts, these stocks are well-positioned to benefit from the expected surge in institutional investment into the cryptocurrency sector. As more traditional financial institutions approve ETFs and increase their allocation to cryptocurrencies, these stocks could see significant appreciation.
Bernstein’s report paints a positive picture for the future of cryptocurrencies and related stocks. The imminent approval of spot bitcoin ETFs by major wirehouses and large private bank platforms is expected to be a game-changer, providing institutional investors with easier access to the cryptocurrency market. This development, combined with bullish price forecasts for bitcoin, underscores the growing acceptance of cryptocurrencies as a legitimate asset class. For investors looking to capitalize on this trend, now may be an opportune time to consider exposure to bitcoin and crypto-related stocks.
As the market continues to evolve and institutional adoption increases, the potential for further gains in bitcoin and related assets appears promising.
