Spot Bitcoin ETF Report from Bernstein: “The Impact on BTC’s Market Cap Would Be Huge”

According to a new report by Sanford C. Bernstein, approval of a Bitcoin exchange-traded fund (ETF) in the US could have a significant impact on the cryptocurrency market.

Assuming a conservative 5% adoption rate among US retail and institutional investors, the report, released Monday, estimated that a spot Bitcoin ETF could account for 10% of the market cap of Bitcoin within three years.

Bernstein analyst Gautam Chhugani also noted in his report on Monday that the likelihood of a spot BTC ETF is increasing.

The SEC recently delayed its decision on the ARK 21Shares Bitcoin ETF, one of several applications pending review. Among the applications pending before the SEC are those that the institution should decide in September as postponement, rejection or acceptance.

The report cites the example of the Grayscale Bitcoin Trust, which currently holds about 4% of available Bitcoin, as an indication of the potential demand for a spot Bitcoin ETF. Not an ETF but a closed-end fund that trades at a premium or discount to net asset value, the trust has attracted significant inflows from institutional and individual investors.

*Not investment advice.