If you think crypto is dead, think again, says Bernstein’s digital assets analyst. The price of bitcoin has fallen 5.8% over the past six months, according to CoinMetrics, and the flagship crypto has failed to hold onto any significant gains tied to positive catalysts as of late. However, Bernstein says the crypto industry is alive and well — even if the price isn’t reflecting that. “Crypto is perceived ‘dead’, but chances of a Bitcoin ETF led by leading global asset managers (Blackrock, Fidelity et al) [have] significantly improved,” Bernstein’s Gautam Chhugani said in a note Monday. “The Blackrocks of the world can hear the ‘heart beating’ — this time they are beating the average crypto Joe.” The growing potential for crypto adoption by institutions and enterprises is due in part to pressure put on the U.S. Securities and Exchange Commission by a Grayscale court decision in August. The U.S. Court of Appeals for the D.C. Circuit sided with crypto investment giant Grayscale against the SEC, which had denied the company’s application to convert its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund. Other factors are boosting crypto’s prospects, including various applications by institutions for a spot bitcoin ETF. BlackRock , Fidelity , Franklin Templeton and Invesco are among the largest names attempting to launch bitcoin ETFs. There are applications for eight bitcoin ETFs, three ether ETFs and 15 ether futures ETFs. Chhugani also highlighted activity across various sectors in crypto. He pointed out that more than $6 trillion in stablecoins are being settled on public blockchains on an annualized basis, with big firms such as Visa and PayPal announcing stablecoin integrations this year. — CNBC’s Michael Bloom contributed reporting.
