Bullish catalysts include sustained ETF inflows, corporate treasury adoption and U.S. regulatory moves, the report said.
The fall in the monthly average network hashrate was a result of miners curtailing operations in response to the recent heatwave, the report said.
The leading U.S. digital asset exchange is cementing its role as crypto’s universal bank, the Wall Street bank's analyst team said.
The rise in profitability was driven by a 20% increase in the bitcoin price, while the hashrate rose only 3.5%, the report said.
The broker raised its price target for the crypto exchange to $421 from $301 and reiterated its buy rating on the stock.
The next phase of real-world asset tokenization will go beyond stablecoins, targeting private markets and illiquid assets, the report said.
Stablecoins could find uses beyond that of a crypto trading pair after the U.S. Senate passed the GENIUS Act, the report said.
The combined hashrate of the 13 bitcoin miners the bank follows has risen 99% year-on-year versus a 55% y/y increase in the network hashrate, the report said.
The number of crypto IPOs year-to-date matches the pace of offerings seen in the bull market of 2021, the report said.
The bank increased its CleanSpark, Riot Platforms and MARA Holdings price targets.
More than 30% of the circulating bitcoin supply is now held by centralized entities including exchanges, ETFs, companies and sovereigns, the report said.
Ether ETF inflows totaled $815 million over the last 20 days as investors have woken up to the network's value proposition, the broker said.
Sixty-one corporate treasuries now hold a combined 3.2% of the total bitcoin supply.
The total market cap of the 13 U.S.-listed miners that the bank tracks rose 19% from the month previous, according to the report.
Neither the number of transactions nor active addresses has increased significantly following recent network upgrades, the report said.
As stablecoin usage grows, so does the demand for short-term U.S. Treasuries, the report said.
Both ether and bitcoin products saw net inflows despite a drop in underlying asset prices, the report said.
The bank said it expects solana to underperform ether over the next two to three years, in a report initiating coverage of the cryptocurrency.
The passage of a U.S. stablecoin bill could be one of the most important regulatory developments in the history of crypto, the report said.
U.S.-listed miners also produced fewer bitcoin last month than in March.
Holdings of the stock by government bodies reflects a desire to gain bitcoin exposure where in some cases local regulators do not allow direct ownership, the report said.
Mining gross margins expanded sequentially this month, which is encouraging, the bank said.
The exchange is the first and only crypto company to join the S&P 500 index.
Stablecoins are increasingly becoming strategic assets, and support dollar dominance, the report said.
The crypto exchange's broadening product suite and dominant U.S. market position set it up well for the long term, many analysts said.
Spot bitcoin ETF net inflows totaled over $4 billion in the last three weeks, when adjusted for hedge fund basis trades, the bank said.
The token has traded like an unweighted mix of bitcoin and ether since May 2021, the report said.