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- Bernstein analysts say Grayscale’s decision is a game changer.
- Gautam Chhugani expects Bitcoin to benefit materially from it.
- The world’s largest cryptocurrency is still holding around $26,000.
The recent decision in favor of Grayscale and against the Securities & Exchange Commission is a “game changer”, said Gautam Chhugani – an analyst at Bernstein.
Chhugani expects Bitcoin to gain momentum
Last week, a US Court of Justice said regulators had insufficient grounds to block Grayscale converting its bitcoin trust into an exchange-traded fund.
The decision is a major step towards the first US Bitcoin ETF and paved the way for a significant institutional-driven rally in the world’s largest cryptocurrency, according to Chhugani.
Strong court appearances are increasing the chances of progressive ETFs and institutional interests positioning the crypto for an unprecedented institutional capital-led cycle.
Earlier this year, Ripple also won a major victory in its long-running lawsuit against the Securities & Exchange Commission (find out more).
How fast can Bitcoin ETFs get approved?
Despite the positive catalysts in recent months, Bitcoin is still holding around the $26,000 level – well below this year’s high of over $31,000. However, Bernstein’s Chhugani said in a research note today:
This cycle was slower to start, but is based on a strong fundamental foundation of regulatory clarity and more long-term strategic players entering the sector.
He predicts the first US Bitcoin ETF will become a reality no later than March 2024. But analysts don’t predict that exchange-traded funds will be the end all.
Chhugani is confident that asset managers will push Ethereum Spot ETFs thereafter and may even venture into Solana and Polygon eventually.
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