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Authorization for a BTC Spot ETH Could Assist Igniting an Exclusive Crypto Cycle, Says Bernstein

A Report reveals that the market will receive new funds through newly issued stablecoins, traditional assets becoming tokens, crypto platform tokens, and ETFs.

ShahZaib Ahmed



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The crypto exchange-traded-funds (ETFs) incorporate capital into the industry by increasing demand within the spot sector. In addition to this, the market indication of regulatory authorization for the respective products creates a huge increase in the growth rate for institutional and retail flows that seek legitimacy, according to a report made by Bernstein on Monday.

Well-Known Broker Bernstein Says the Latest Crypto Cycle Can Be Ignited by the Approval of Bitcoin Spot ETFs

Moreover, Gautam Chhungai-led analysts wrote that prominent worldwide asset managers are taking a great interest in Bitcoin-related spot ETFs. As per the analysts, the respective entities are also interested in likely systems to deal with the US objections raised by the United States Securities and Exchange Commission (SEC). Keeping that in view, the likelihood of the approval for such assets has increased, the analysts added.

Also Read: The Future of Bitcoin and Crypto in 2023

Bernstein is of the view that the market of Bitcoin spot ETFs would become sizeable, touching nearly ten percent of the cumulative market capitalization of Bitcoin in the coming 3 years. The US securities regulatory agency recently extended the review conducted by it on the Bitcoin ETF application filed by Ark 21Shares, as the agency keeps on assessing the applications filed by conventional financial giants like Fidelity Investments and BlackRock (BLK).

The Broker Also Points Toward New Stablecoin Supply and Tokenization of Conventional Assets as Other Contributing Factors

The crypto-related exchange-traded funds will leverage a resilient brand marketing momentum by driving the worldwide platforms managing and offering services for the management of the crypto assets. They will also leverage a dissemination push led by the financial advisors and retail brokers, as pointed out by the note.

The broker stated that the latest capital to operate a unique crypto cycle is likely to be ignited by the unique stablecoin supply, conventional assets’ tokenization, ETFs, and tokenization of local crypto infrastructure.

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