Bitcoin is predicted to reach new heights until the end of 2018 given the emergence of cryptocurrency ETFs and the growth of institutional investment.

The price of the digital currency, according to analysts at cryptocurrency research company IronWood, is likely to exceed $35,000 in the near future owing to the growing number of cryptocurrency ETFs.

Meantime, the co-founder and CIO of the leading cryptocurrency investment company BlockTower Capital, Ari Paul believes the next mid-term rally will be driven by institutional investors possibly before the end of the year.

According to Paul, the lack of trusted custodians and a suite of institutional digital money products, keeps institutional investors from entering the crypto market. Once such services as Coinbase Custody are completed and cryptocurrency firms are approved to work as custodians, institutional investors will be ready to enter the market.

“Institutional money started trickling into cryptocurrency in mid 2017, but it’s been slower than many expected. That doesn’t mean it’s not coming,” Paul says. “There are a lot of pieces that need to come together, one big piece being third party custody. Custody isn’t binary. It’s not like Coinbase custody will launch and suddenly every pension will throw $100 million into BTC. It takes time for custody solutions to gain trustworthiness. But, I think we’ll have solid third party custody by September of this year.”

However, the entrance of institutional investors into the market is not the only factor that could lead to the growth of bitcoin. Analysts at IronWood believe the emergence of such investment tools as ETFs could trigger the next price rally.

Bitcoin is currently in the bear market that began in December when it reached a record high of $20,000. The cryptocurrency has dropped by 65% since then is now traded at above $6,200. However, the market is in the accumulation period now, amid which firms start developing products necessary to drive the next rally.

As IronWood CEO, Michael Strutton, explained in a blog post, anyone with an IRA, 401k, or an investment account could embrace bitcoin if an ETF is approved by the US Securities and Exchange Commission (SEC). Strutton noted that with a bitcoin ETF the value of bitcoin could achieve at least $26,000 and underneath $44,000.

“If ETFs add 24 million US investors and the upward momentum adds 14 million from the rest of the world, then that adds $84 billion and $336 billion, respectively, to the market cap. Over the past six months, Bitcoin’s market cap has swung from $326 to $110 billion. Adding $420 billion to the market cap could put Bitcoin price range from $26,000 to $44,000.”

Blockchain-based ETFs is another way for investors to enter the cryptocurrency market and the number of these investment instruments is steadily growing. In January, Reality Shares Advisors and Amplify Trust ETF became the first to launch the funds tracking the performance of blockchain companies. Called BLCN and BLOK, the ETFs were launched on Nasdaq and the New York Stock Exchange Arca.

Last month, Brian Kelly, the founder of BKCM LLC, an independent investment firm specializing in cryptocurrency and blockchain-focused investment opportunities, announced the launch of a new blockchain ETF in partnership with REX Shares.

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