Bitcoin Spot ETF Approval Could Help Power up a New Crypto Cycle: Bernstein

Crypto exchange-traded-funds (ETFs) add capital to the market not just by creating demand in the spot market, but the market signal of regulatory approval of these products produces a growth flywheel for retail and other institutional flows that are seeking legitimacy, broker Bernstein said in a report Monday.

“With the interest of leading global asset managers in bitcoin (BTC) spot ETFs and potential mechanisms to address the U.S. Securities and Exchange Commission (SEC) objections, the probability of approval has risen,” analysts led by Gautam Chhugani wrote.

Bernstein expects a spot bitcoin ETF market to be sizable, reaching 10% of bitcoin’s market cap in two to three years.