Key Insights
- Analysts predict a multi-year crypto bull market that will last through the next two years.
- According to Nate Geraci, “Spot crypto ETF floodgates” are set to open over the next two months.
- Several SEC deadlines now sit in October, and may determine what comes next for the market.
The crypto market is currently facing a decline in sentiment. However, the bullish trend is still generally intact. Analysts believe the current cycle could last well beyond the four-year pattern.
Brokerage firm Bernstein even predicts that this bull run may stretch into 2027 or beyond. This depends on an incoming “floodgate” opening of crypto ETF approvals. This could change the market’s direction for years.
Bernstein Analysts Say The Market Is Just Getting Started
According to Bernstein analysts Gautam Chhugani and Mahika, Bitcoin could climb into the $150,000 to $200,000 range. They expect this growth to spread far beyond Bitcoin and affect other altcoins like Ethereum, Solana, and other DeFi tokens.
One of the most critical aspects of this outlook is the role of the Exchange Traded Funds, also known as ETFs. ETFs have been proven to increase the price and investor interest in digital assets massively.
The same was seen in Bitcoin and Ethereum between last year and now. A similar wave of ETF approvals may hit the general altcoin market. For assets like XRP, Solana, Cardano, Litecoin, and more, things could change.
ETF Decisions Could Spark Market Expansion
The US Securities and Exchange Commission is looking into multiple applications for spot Crypto ETFS. Some of the most popular include asset manager filings for cryptos like Litecoin and Solana. XRP, in particular, has been a significant source of buzz across the market.
So far, Bloomberg analysts predict a 95% chance that at least one XRP ETF will be approved by October. The SEC also has a deadline for many applications set for October. This includes the one on Grayscale’s request to convert its XRP Trust into a spot ETF.
Another application, the 21Shares XRP ETF, faces a final deadline this month. ETF Store President Nate Geraci said spot crypto ETFs could see approval within the next two months. He believes the SEC will soon be preparing to greenlight products like XRP, Solana, and Litecoin ETFs.
Additionally, Geraci noted that an Ethereum staking ETF is underway with the CLARITY Act. It’s now in the Senate. He further commented that the rest of the year “should be wild” for crypto if these applications finally pass.
Institutional Demand Reshaping the Crypto Market
Analysts have repeatedly explained that institutional demand is one of the biggest drivers of the crypto market’s performance. Traditional firms now report higher volumes and are expanding into digital asset treasuries.
More and more capital flows into the crypto ETF market over the weeks. Also, the crypto market has never been stronger in relative terms.
Robinhood recently revised its growth outlook after crypto trading volumes reached $16.8 billion in July. This was a 110% monthly increase. This mainly happened as the company recently acquired Bitstamp and expanded into tokenised European products.
Coinbase, another crypto giant, has been even more aggressive. The exchange acquired Deribit’s options platform for $2.9 billion and reported July trading activity above $100 billion.
Finally, Circle is also making waves. Its USDC stablecoin supply is projected to grow from $68 billion to $173 billion over the next few years.
Regulatory Environment Shapes ETF Outlook
The regulatory environment is also becoming more favourable for digital assets. The US is moving closer to clearer frameworks for digital assets, especially with the Clarity Act. This has already passed the House and now awaits Senate debate.
If enacted, the Clarity Act would classify digital assets better, whether as commodities or securities. Such clarity would reduce legal uncertainties and make it easier for financial products like crypto ETFs to gain approval.
