Bitcoin's price could surge to $150,000 by 2025, according to a new prediction by investment research firm Bernstein.

In a note to clients on Tuesday, Bernstein analyst Gautam Chhugani cited optimism around the potential approval of a Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) in the next two years.

According to a report from CNBC, Chhugani wrote in the note that he believes the SEC will likely approve a Bitcoin ETF in the first quarter of 2024. His prediction echoes that of JP Morgan analysts, who say there's a 90% chance investors get an BTC fund before January 10.

Bernstein, along with most other Wall Street firms, had ruled out BTC as an investment asset in 2018. But the company was still paying attention by tracking Bitcoin mining companies and publishing its own take on the contagion that spread from firm to firm in mid-2022.

Now, the firm says, a Bitcoin ETF would allow mainstream investors to gain exposure to BTC directly from their portfolios for the first time via an SEC-regulated investment product. Currently, the only similar product is the Grayscale Bitcoin Trust (GBTC), which holds around 3% of outstanding BTC supply.

The $150,000 target is nearly five times Bitcoin's current price of around $34,000 and more than double its all-time high of $67,000 from November 2021. If realized, Bernstein's lofty prediction would signify a massive turnaround for the cryptocurrency from its steep sell-off last year.

Bitcoin has rallied recently, reaching $35,000 last week for the first time since May 2022. Investors are increasingly hopeful the SEC will approve a Bitcoin ETF after declining to appeal a court ruling in Grayscale's lawsuit. However, SEC Chair Gary Gensler has been highly critical of the crypto industry, so whether regulators will embrace a Bitcoin ETF remains uncertain.

Bernstein also noted the upcoming "halving" event in 2024 will help boost BTC's price by forcing out inefficient miners. The firm initiated coverage on several BTC mining stocks, expecting the survivors to see significant gains.

Editor’s note: This article was written with the assistance of AI. Edited and fact-checked by Stacy Elliott.