The cryptocurrency sector, powered by Bitcoin, is primed for an unparalleled boom, claims financial research company Bernstein.
The company asserts that this uptick is the result of last week’s significant court ruling in Grayscale’s favour in its action against the U.S. Securities and Exchange Commission (SEC).
Bernstein says that institutions are anticipated to be the driving force this time, in contrast to prior rallies that were predominantly driven by ordinary investors.
The company credits improved legal clarity and a more targeted intake of long-term institutional investors for the slower but more substantial development.
Short-lived price surge
Despite a number of encouraging triggers, Bitcoin and other cryptocurrencies have recently showed very disappointing price behaviour. The absence of an early reaction from the market, according to Gautam Chhugani of Bernstein, should not be seen as a failure to progress.
Following the decision in Grayscale’s favour last week, the leading cryptocurrency had a temporary increase of almost 7%. Gains were transient, though, as the crypto king dropped to below $26,000.
Bitcoin ETF odds rise
Steven McClurg, the CIO of Valkyrie, also offered his opinion on the ETF competition, claiming that there is a “greater than 50% chance” that the SEC would approve a spot Bitcoin ETF this year.
This follows the SEC delaying its judgement on ETF applications submitted by illustrious companies including Blackrock, Valkyrie, WisdomTree, and Invesco. On October 16 and 17, there will be deadlines for these determinations, and the market is eagerly expecting the SEC’s next steps.
According to U.Today, Bernstein predicted that, if authorised, a Bitcoin ETF could increase the market value of the cryptocurrency by up to 10% over the following three years.
