Bernstein: The Potential for Crypto ETFs Goes Beyond Bitcoin, Encompassing a Range of Digital Assets
According to the report, the industry's momentum toward an Ethereum spot ETF will swiftly follow the approval of a Bitcoin ETF, as Ethereum (ETH) boasts a comparable market structure with both a traded CME futures market and a spot market.
Because Bitcoin
September 4, 2023
The latest Bernstein report, led by Gautam Chhugani, stated that the potential for crypto ETFs goes beyond just Bitcoin and will encompass various other cryptocurrencies, as per a CoinDesk report. The first spot Bitcoin ETF is expected to be approved sometime between mid-October and mid-March, with approval for all spot ETF applications, including Grayscale's, occurring simultaneously, as outlined in the report.
The report also noted that there is a strong push for an Ethereum spot ETF, given that Ethereum shares a similar market structure with a traded CME futures market and a spot market.
Furthermore, the asset management industry is projected to expand its focus beyond Bitcoin and Ethereum, venturing into other leading blockchain networks like Solana and Polygon, as well as prominent decentralized finance assets. DeFi encompasses various financial activities conducted on a blockchain without traditional intermediaries, such as lending and trading.
This presents a substantial commercial opportunity for the asset management industry to generate substantial fees within a growing asset class, as highlighted in the report.
The report concluded by emphasizing that recent courtroom successes, including those of Ripple and Grayscale within the past two months, alongside improved ETF prospects and increasing institutional interest, are positioning the crypto industry for an unprecedented capital-driven cycle, distinct from the retail-driven crypto cycles of the past.
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