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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bernstein Predicts Spot ETFs Could Claim 10% Of Bitcoin’s Market If Greenlit

Samuel Edyme
Samuel Edyme
1 year ago
3 mins read
Bitcoin (BTC)

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According to Bloomberg, a recent research report from Sanford C. Bernstein has shed light on the potential impact of Exchange Traded Funds (ETFs) on the Bitcoin market dynamics.

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Potential Surge In Bitcoin Market Value

Sanford C. Bernstein’s research indicates that should the US green-light a fund investing directly in spot Bitcoin, ETFs could constitute roughly 10% of Bitcoin’s market value within the next three years.

Such a shift could amplify Bitcoin’s presence in traditional financial portfolios and potentially foster more significant institutional adoption.

According to Bloomberg, Gautam Chhugani, an analyst at Bernstein, highlighted the rising probability of a spot Bitcoin ETF in the report.

In a separate report, this same analyst had recently disclosed that the SEC believes that a Bitcoin Spot ETF may be “unreliable” since crypto exchanges (such as Coinbase) aren’t under their oversight, leading to concerns about potential price manipulation and unreliability.

While the speculation on the SEC approval of a Spot Bitcoin ETF continues, with the Grayscale Bitcoin Trust currently holding about 4% of all Bitcoin, according to Bloomberg, a direct investment, ETF could more than double this figure, potentially aiding the growth of the crypto investment landscape.

The “Growth Flywheel” Effect

Once regulatory approval is in place, Bernstein anticipates a “growth flywheel” effect propelled by retail and other institutional inflows. Such a cascade effect would be reminiscent of other financial markets where introducing new financial products spurred fresh investments and liquidity waves.

Notably, to understand the significance of this, one only needs to consider the broader ETF market’s growth trajectory. Since their inception, ETFs have grown exponentially, with assets under management surging across various sectors and asset classes.

Introducing a Spot Bitcoin ETF would mean integrating a highly liquid, decentralized, and increasingly accepted asset into this mix, further validating Bitcoin’s place in the financial ecosystem.

Meanwhile, Bitcoin’s price is struggling to break above the $30,000 mark after slipping below that price range last week. As of this writing, the asset trades at $29,623, recording a slight increase of 0.5% over the past 24 hours.

Bitcoin (BTC)’s price chart on TradingView
Bitcoin (BTC)’s price is moving sideways on the 4-hour chart. Source: BTC/USD on TradingView.com

Alongside its struggling price, BTC’s market capitalization has increased by more than $10 billion in just the past week. The asset market cap has surged from a high of $560 billion earlier last week to a current cap of $573 billion.

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The top crypto’s trading volume has also followed closely with its surging market cap and has seen a significant spike from last week’s daily trading volume. Bitcoin’s 24-hour trading volume currently stands at $11.3 billion compared to a lesser volume of $8.7 billion last Monday.

Featured image from iStock, Chart from TradingView

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Samuel Edyme
Samuel Edyme

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Read more

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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