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Bitcoin and Ether ETFs to Grow to $450 Billion as Bitcoin Price Hits $150,000
- Bernstein predicts that Bitcoin and Ether ETFs will reach a market capitalization of $450 billion by 2025, with Bitcoin potentially reaching $150,000.
- The SEC’s recent approval of a spot Ether ETF sets a regulatory precedent, raising the outlook for other cryptocurrencies.
According to a recent analysis by Bernstein, as highlighted in today’s Yahoo Finance update, the Bitcoin and Ether exchange-traded funds (ETFs) are on track for tremendous growth. The firm predicts that these ETFs could collectively reach a market valuation of $450 billion by 2025, coinciding with a potential rise in Bitcoin’s price to $150,000.
This bullish outlook is supported by accelerating adoption rates in the financial sector and the growing acceptance of cryptocurrency as a legitimate investment vehicle.
Regulatory developments strengthen market confidence
Highlighting the feasibility of these projections, noted blockchain community member Collin Brown highlighted the rapid pace of adoption as a strong indicator of future growth. In a recent tweet, Brown referenced the Bernstein report, highlighting his prediction that the Bitcoin and Ether ETF market could surge to $450 billion, with Bitcoin potentially hitting a price of $150,000 by the end of 2025. For this year, the expected price of Bitcoin is set at $90,000.
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A new Bernstein report suggests that the #Bitcoin and the Ether ETF market could grow to $450 billion in volume with a corresponding Bitcoin price of $150,000 by the end of 2025. This year, #BTC the price is $90,000.
I think it’s more than possible with the current… pic.twitter.com/39BlpjgJ6f
— Collin Brown (@CollinBrownXRP) May 28, 2024
A significant factor contributing to the optimistic forecast is the recent approval of Ether as a spot ETF by the US Securities and Exchange Commission (SEC). This approval not only highlights Ether’s classification as a commodity rather than a security, but also establishes a regulatory framework that could facilitate similar approvals for other cryptocurrencies. For example, Ether ETF approval could pave the way for other proof-of-stake tokens, boosting the prospects for cryptocurrencies like Solana, as noted by Bernstein.
Institutional interest and market dynamics
Bernstein’s report also points to a strong influx of institutional money into the cryptocurrency market, predicting over $100 billion in new investments in crypto ETFs within the next 18-24 months. This influx is attributed to growing institutional and retail interest, spurred by regulatory clarity and broader acceptance of digital currencies in traditional finance.
Furthermore, the current market dynamics, as reported by the CNF, indicate that Bitcoin ETFs now hold over one million BTChighlighting the rapid growth of the industry and the significant role of major players such as Grayscale and BlackRock.
Despite the recent decline in Bitcoin prices, the market is showing signs of upside immediate recovery with an intraday increase of 15.57%pushing the price to $68,494.85. This volatility underlines the dynamic nature of the cryptocurrency market and highlights the speculative interest that drives much of the trading activity. For the latest price movements, view the current price chart here.
$68,494.85