AllianceBernstein Holding L.P. (AB), perhaps better known as Bernstein, operates as an international asset management company, offering investment and research solutions to a diverse clientele that includes institutional investors, wealthy individuals, and general retail investors. The company’s main office is situated in Nashville, Tennessee, and it maintains a global presence with various international locations.
According to a report by CNBC, on October 31, Bernstein released a note indicating that the price of Bitcoin could potentially escalate to $150,000 by the year 2025. The optimistic forecast is based on the expectation that the U.S. Securities and Exchange Commission (SEC) will approve a spot Bitcoin exchange-traded fund (ETF) by the first quarter of 2024.
Bernstein’s bullish estimate represents a quintupling of Bitcoin’s current price, which hovers around $34,000. It also signifies more than a twofold increase from Bitcoin’s all-time high, which was recorded at over $67,000 in November 2021.
Bernstein anticipates that the approval of a spot Bitcoin ETF by the SEC would result in up to 10% of Bitcoin’s circulating supply being allocated toward ETFs. This would enable traditional investors to gain direct exposure to Bitcoin through their investment portfolios. Currently, 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, emphasized the importance of timing in his note. He stated that even if one is not particularly fond of Bitcoin, viewing it dispassionately as a commodity suggests that the timing for an SEC-approved ETF seems imminent. Chhugani’s comments came as part of a broader analysis where he also initiated coverage on several Bitcoin mining companies.
The note also touched upon the upcoming Bitcoin “halving” event scheduled for April 2024. During this event, the rewards for Bitcoin mining will be halved, a feature that is programmed into Bitcoin’s underlying code. Chhugani believes this will lead to the elimination of less successful miners, thereby benefiting those who remain in the market.