Bernstein analysts have raised their Bitcoin price target, now projecting the cryptocurrency could nearly hit $200,000 by the end of next year. This optimistic forecast comes on the heels of robust inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) since their approval earlier this year. Previously, Bernstein had set a target of $150,000 for Bitcoin.
The analysts’ prediction hinges on the expectation that spot Bitcoin ETFs will encompass approximately 7% of the total circulating Bitcoin supply by the close of 2025. “We anticipate Bitcoin ETFs to soon gain approval on major wirehouses and significant private bank platforms in the third and fourth quarters,” wrote Bernstein analysts Gautam Chhugani and Mahika Sapra in a communication to clients.
They characterize institutional adoption as a pivotal “Trojan Horse” for expansion, noting that institutional investors are presently exploring long positions. Currently, the majority of spot Bitcoin ETF flows, nearly 80%, originate from self-directed retail investors through broker platforms, while institutional integrations with wirehouses remain in nascent stages.
Bernstein notes that combined ETFs have already attracted approximately $15 billion in net new flows. Looking ahead, the analysts anticipate Bitcoin ETFs will constitute around 7% of Bitcoin’s circulating supply by 2025 and about 15% by 2033. They project that assets under management (AuM) for spot Bitcoin ETFs could rise to approximately $190 billion by the market peak in 2025 and reach $3 trillion by 2033.
