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Bitcoin and Ether ETF markets poised to reach $450B: Bernstein

May. 28, 2024

Ether is the first PoS-based token to receive approval for a spot ETF, setting a precedent for other tokens to potentially follow suit.

researchers analyzing projections for market capitalization

According to a recent research report by broker Bernstein, the Bitcoin (BTC) and Ether (ETH) exchange-traded fund (ETF) markets are expected to experience substantial growth, potentially reaching a combined value of $450 billion. This growth is based on Bernstein’s crypto price forecasts and could result in over $100 billion in inflows into crypto ETFs over the next 18 to 24 months.

Bernstein’s optimistic outlook on the crypto ETF market is driven by their price predictions for bitcoin and ether. The broker anticipates a Bitcoin cycle high of $150,000 in 2025 and has set a year-end price target of $90,000. These projections suggest a significant upside potential for the leading cryptocurrency, which could fuel investor interest in bitcoin ETFs.

Ether, the second-largest cryptocurrency by market capitalization, gained approximately 26% last week following the US Securities and Exchange Commission’s (SEC) approval of the 19b-4 filings of eight spot ETH ETF issuers, although this run was quickly followed by a lull in the market seeing dips of up to 5%, according to data from CoinGecko. Once the S1 filings are approved, ether ETF trading will commence on exchanges.

The report from Bernstein highlights that the classification of ether as a commodity rather than a security has settled the “biggest controversy” surrounding Ethereum and its Ether component. This development is expected to provide clarity and boost investor confidence in ether and its associated ETFs.

Bernstein notes that Ether’s approval as a spot ETF holds positive implications for other blockchain tokens, particularly those based on proof-of-stake (PoS) consensus mechanisms. Ether is the first PoS-based token to receive approval for a spot ETF, setting a precedent for other tokens to potentially follow suit.

The report specifically mentions Solana (SOL) as a token that could benefit from this development, as it shares similar characteristics with Ether in terms of its underlying consensus mechanism.

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