Standard Chartered today published a report predicting a significant increase in Bitcoin Exchange Traded Fund (ETF) inflows in 2024, with the Bitcoin (BTC) price reaching $200,000 by the end of 2025.
The multinational banking and financial services company predicts that the US Securities and Exchange Commission (SEC) will approve spot ETFs for Bitcoin in the near future. This confirmation could trigger a significant increase in the price of Bitcoin based on the historical performance of gold Exchange Traded Products (ETPs), according to the company.
Standard Chartered expects Bitcoin to experience faster price gains than gold as the Bitcoin ETF market matures faster. The bank thinks there will be potential inflows into Bitcoin ETFs of $50 billion to $100 billion in 2024, which could push Bitcoin to $200,000 by the end of 2025.
The SEC's expected approval of Bitcoin spot ETFs is seen as a pivotal moment to normalize institutional money's participation in Bitcoin, the company said. The bank believes that this approval will provide a significant inflow and price increase for Bitcoin.
Standard Chartered compared this to the launch of the first US-based gold ETP in November 2004 to estimate the potential impact. In the seven to eight years it took for gold ETP assets to mature after the launch of the first ETP, the price of gold had increased 4.3 times.
The bank predicts that Bitcoin will see price increases of similar magnitude as a result of the US spot ETF approval. However, given the view that the Bitcoin ETF market will develop more rapidly, these gains are expected to occur in a shorter period of time, such as one to two years, according to the company.
This prediction is consistent with Standard Chartered's view that Bitcoin will be at the $ 100,000 level by the end of 2024. If ETF-related inflows occur as expected, the bank believes a level near $200,000 is possible by the end of 2025. This assumes that 437,000 to 1.32 million new Bitcoins will be held in spot US ETFs by the end of 2024, equating to approximately $50 billion to $100 billion in US dollars.
*This is not investment advice.
