Research and brokerage firm Bernstein’s analysts have raised their price estimate for Bitcoin, predicting that it may approach $200,000 by the end of the following year. This bullish forecast comes after significant inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) after their January approval. Bernstein had previously set a goal for Bitcoin of $15,000.
By the end of 2025, spot Bitcoin ETFs are expected to represent about 7% of the entire amount of Bitcoin in circulation, according to the researchers’ prediction. In a note to clients, Bernstein analysts Gautam Chhugani and Mahika Sapra stated, “We see Bitcoin ETFs as on the cusp of approvals at major wirehouses and large private bank platforms in the third and fourth quarters.”
Institutional investors are currently assessing long positions in the institutional basis trade, which they refer to as a “Trojan Horse” for acceptance. Currently, self-directed individual investors through broker platforms account for around 80% of spot flows for Bitcoin ETFs, while institutional connections with wirehouses are still in their infancy.
Bernstein estimates that net new money has already flowed into combination ETFs totaling about $15 billion. By 2025 and 2033, respectively, Bitcoin ETFs are predicted by researchers to account for roughly 7% and 15% of all Bitcoin in circulation. According to their projections, spot Bitcoin ETFs’ assets under management (AuM) would approach $190 billion by the time the market peaks in 2025 and $3 trillion by 2033.
