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- Research firm Bernstein says crypto’s 136% surge year-to-date — measured in Bernstein’s basket of cryptocurrencies — will continue.
- But the Bernstein’s basket of cryptocurrencies is up only 34% since its inception.
Happy Thursday!
The crypto market’s month-long rally shows no sign of weakening, say Bernstein analysts in a report.
Let’s dive into it.
Rally until January
“This crypto rally has legs,” Bernstein analysts wrote in a report to investors today.
Bernstein noted that the recent price dip — which saw Bitcoin stumble from $37,450 to $34,820 — was bought up within 24 hours.
“We expect continued strength, at least until the first Bitcoin ETF approval comes through, likely in January,” said the report.
Bloomberg Intelligence analysts James Seyffart and Eric Balchunas estimate a 90% probability that the Securities and Exchange Commission greenlights Bitcoin spot exchange-traded funds by January 10.
Even then, the actual launch of these products may come “days, weeks, even months” after the SEC first gives them the nod.
Ethereum spot ETFs will soon follow Bitcoin spot ETFs, Bernstein said, given that Ethereum futures ETFs have already been approved and Ethereum futures contracts are already offered by the CME.
BlackRock showed its intent to launch an Ethereum spot ETF when it submitted a so-called 19b-4 filing with Nasdaq on November 9. The financial giant also filed an S-1 form with the SEC this morning.
Both forms present essential steps for the application, and eventual launch, of an ETF product.
The Bernstein report also gave updates on the investment basket of cryptocurrencies Bernstein created on July 31.
The basket consists of Bitcoin, Ethereum, Optimism, Arbitrum, Polygon, Lido, Solana, Uniswap, Synthetix Network, GMX, and Chainlink.
The basket showed a 34% return since its inception in July, a 14% return this week, and a 136% return since the beginning of 2023.
Crypto market movers
- Bitcoin is down 0.8% over the last 24 hours, trading for $36,678.
- Ethereum slumped by 0.6% in the same period, at $2,026.
- Avalanche is up 18%.
What we’re reading
- Do Kwon loses bid to overturn guilty verdict on fake passport charge — DL News
- Solana Denies Security Threat to Saga Phone Flagged by CertiK — Unchained
- Crypto Tax Loss Harvesting — Milk Road
- DeFi Is Becoming Less Competitive a Year After FTX’s Collapse Battered Crypto — Bloomberg
- SEC Delays Decisions On Hashdex And Grayscale Crypto ETF Filings, Bitcoin Reacts — Milk Road
Tom Carreras is a Markets Correspondent at DL News. Got a tip? Reach out at tcarreras@dlnews