AllianceBernstein Holding L.P., commonly referred to as Bernstein, functions as a global asset management firm, catering to a diverse clientele that includes institutional investors, affluent individuals, and general retail investors. The company’s primary headquarters are located in Nashville, Tennessee, and it maintains a significant global presence with various international branches.
As per a recent report from CNBC on October 31, Bernstein issued a note projecting the potential for Bitcoin’s price to surge to $150,000 by the year 2025. This optimistic forecast is grounded in the expectation that the U.S. Securities and Exchange Commission (SEC) will grant approval for a spot Bitcoin exchange-traded fund (ETF) by the first quarter of 2024.
Bernstein’s bullish estimate signifies a fivefold increase from Bitcoin’s current price, which hovers at approximately $34,000, and it also represents more than a twofold rise from Bitcoin’s previous all-time high, recorded at over $67,000 in November 2021.
The report from Bernstein anticipates that the SEC’s approval of a spot Bitcoin ETF would lead to the allocation of up to 10% of Bitcoin’s circulating supply towards ETFs. This would open the door for traditional investors to directly include Bitcoin in their investment portfolios. Presently, the closest comparable product is Grayscale’s Bitcoin Trust (GBTC), which holds approximately 3% of the total outstanding Bitcoin.
Gautam Chhugani, an analyst at Bernstein, highlighted the critical aspect of timing in his note. He emphasized that even for those who may not have a strong affinity for Bitcoin, considering it objectively as a commodity suggests that the approval of an SEC-sanctioned ETF is on the horizon. Chhugani’s remarks were part of a broader analysis that included the initiation of coverage on various Bitcoin mining companies.
Additionally, the note delved into the upcoming Bitcoin “halving” event scheduled for April 2024. During this event, the rewards for Bitcoin miners will be halved, a predetermined feature within Bitcoin’s underlying code. Chhugani believes that this event will lead to the elimination of less competitive miners, thereby benefiting those who continue to operate in the market.