Bernstein: Bitcoin Spot ETF Approval Will Launch a New Bullish Trend in the Market

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Bernstein analystsstated that the approval of a Bitcoin ETF could trigger a bullish trend in the market, catalyzing a “new cycle” that would bring “legitimacy to liquid tokens.”

According to Bernstein's report, the approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) will make trading of the product "acceptable to institutional investors."

“For the first time in the history of cryptocurrencies, institutional investors have the chance to enter the market before the massive rush begins, and this is a positive factor for the entire industry,” the report says.

Although the SEC has not yet approved anyBitcoin spot ETF, Bernstein suggested that this could happen by January 2024, “if not earlier.” The reason for this assumption was that the investment company Grayscale won a lawsuit with the SEC in August.

Analysts also said that SEC ChairmanGary Gensler recently softened his comments after previously calling the entire industry "hucksters." In addition, Bernstein noted, the price of gold, which jumped by about 2.5%, could be another indicator of an imminent bullish trend in the market.

“We typically see a sharp increase in the correlation between Bitcoin and gold during periods when more investors are looking for a safe haven,” the analysts wrote.

Today, the Bitcoin rate exceeded $35,000 and reached its highest level since May last year, helped by positive traders' sentiments associated with the possible approval of a Bitcoin ETF in the United States.