The recent surge in Bitcoin’s price, according to a report published on Monday by global investment firm Bernstein, is set to continue, driven primarily by major institutional investments. Analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia noted that the current bull run was initially triggered by the anticipation and subsequent approval of Bitcoin exchange-traded funds (ETFs) in the U.S. The trend was then fueled further by the election of crypto-friendly President Donald Trump. The analysts suggest that the continued influx of institutional cash into the Bitcoin market indicates that the rally is far from over.
“The confluence of adoption by banks, institutional investors, corporates, and eventually sovereigns, either directly or via sovereign funds, is positioning Bitcoin as the clear challenger to gold,” the report stated.
Bitcoin’s price has reached unprecedented highs since the introduction of Bitcoin ETFs over a year ago. The digital asset broke the long-anticipated $100,000 mark following President Trump’s election in November. At the time of writing, CoinGecko data indicates that Bitcoin is now trading for $96,044 per coin, representing gains of over 86% in the past year.
The Bernstein analysts also highlighted the recent purchase by Abu Dhabi’s sovereign wealth fund of Bitcoin via ETFs as a bullish indicator for the asset. A recent SEC filing revealed that the Mubadala Investment Company, which manages investments on behalf of the Arab government, spent $436 million buying shares of BlackRock’s spot Bitcoin ETF.
Bitcoin and Ethereum ETFs have opened up the crypto investing world to those who were previously unable to participate. Investors can now buy shares in funds that track the price of these digital assets and trade on American stock exchanges. Data presented by Bernstein reveals that prominent institutions such as Jane Street Group, Citadel Advisors, and Morgan Stanley have all made substantial investments, amounting to hundreds of millions of dollars, in these funds.
In previous analysis, Bernstein’s analysts projected that the price of Bitcoin could reach $200,000 per coin by the end of 2025. If the current trend continues, this prediction could well become a reality.
As the world of cryptocurrency continues to evolve and mature, it’s clear that institutional investors have identified Bitcoin’s potential as a lucrative investment. As such, it’s expected that these large-scale investments will continue to drive Bitcoin’s price upwards in the foreseeable future.
