While bitcoin bears argue the spot Bitcoin exchange-traded fund trade is “done,” they are missing two key factors, according to analysts at research and brokerage firm Bernstein.

Arguments against the Bitcoin ETF trade revolve around early allocations being driven by retail investors, with institutional involvement confined to the basis “cash and carry” trade rather than net long positions, meaning the ETF flows are not “real,” Gautam Chhugani and Mahika Sapra wrote in a note to clients on Tuesday.

The Bernstein analysts agreed that recent 13F filings revealed the institutional share in spot Bitcoin ETF participation was just 22% and that rising liquidity in CME bitcoin futures contracts post-ETF launch was evidence of the basis trade.

However, what the bears are missing, Chhugani and …