Bernstein, a well-known research and brokerage firm, has forecasted that spot Bitcoin ETFs are close to receiving approval from major brokerages. The firm maintains its projection of Bitcoin reaching $200,000 by the end of 2025.

While some argue that interest in spot Bitcoin ETFs has waned, Bernstein analysts believe this view overlooks two crucial factors. Critics often point out that early ETF allocations were primarily driven by individual investors, with institutional involvement limited to "cash and carry" trading rather than holding net long positions.

In a note to clients on Tuesday, analysts Gautam Chhugani and Mahika Sapra explained that this implies ETF flows are not "real."

However, Bernstein analysts contend that institutional basis trading acts as a "Trojan horse" for wider adoption. They suggest that institutional investors are now beginning to consider net long positions, bolstered by increased ETF liquidity:

"We believe the 'basis trade' is mainly driven by hedge funds, which account for 36% of institutional allocation. However, based on our discussions with investors involved in Bitcoin ETFs, we can say that the logical next step after basis trading is to consider taking 'long' positions."

Furthermore, financial advisors' distributions indicate genuine demand. Disclosures show that mostly small-to-midcap advisors have allocated 0.1-0.3% of their portfolios to Bitcoin ETFs. Analysts believe future growth will come from larger advisors endorsing ETFs and the significant allocation potential within existing portfolios. #BTC #bitcoin☀️ #Bitcoin❗ #Cryptocurrencies #CryptoNewss