(Bloomberg) -- Exchange-traded funds may account for 10% of the market value of Bitcoin within three years if the US approves a fund that invests directly in the cryptocurrency, according to a Sanford C. Bernstein research report. 

The probability of a spot Bitcoin ETF has risen, Bernstein analyst Gautam Chhugani wrote in the report Monday. 

Currently the Grayscale Bitcoin Trust holds about 4% of the Bitcoin outstanding. Bernstein expects that regulatory approval will create its own “growth flywheel” for retail and other institutional flows. 

On Friday, the US Securities and Exchange Commission delayed its decision to consider the ARK 21Shares Bitcoin ETF application — leaving the crypto community in wait for a spot-Bitcoin ETF. More applications are scheduled for review in September.

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