Table of Contents
- SC: BTC Is Enroute To A Goldrush
- Comparative Analysis with Gold ETFs
- ETF-Related Inflows: A Game-Changer
- All Eyes On SEC
According to banking institution Standard Chartered, Bitcoin is up for a tremendous rally over the next two years, at the end of which it could even hit the $200,000 mark.
SC: BTC Is Enroute To A Goldrush
British multinational bank Standard Chartered has made a bold projection, anticipating that Bitcoin (BTC) could surge to an impressive $200,000 by the close of 2025. This forecast indicates a staggering 300% increase from its current trading value.
Geoffrey Kendrick, the head of financial research at Standard Chartered, addressed the matter in a note to investors, stating,
"If ETF-related inflows materialize as we expect, we think an end-2025 level closer to [$200,000] is possible.”
The bank's optimism hinges on the anticipated approval of Bitcoin spot ETFs, which are set to receive approval shortly. The bank sees this as a significant moment for institutional participation in Bitcoin, expecting the approval to drive substantial inflow and price upside for BTC.
Comparative Analysis with Gold ETFs
The bank drew parallels with the gold market, particularly the introduction of the first gold ETF in the U.S. in November 2004. Standard Chartered estimates that Bitcoin spot ETFs, once approved, could absorb an impressive $50 billion to $100 billion worth of flows within a year.
The bank’s analysts pointed out that the value of gold had appreciated by 4.3X in the seven to eight years since the first ETP was introduced and subsequently matured. This historical perspective suggests that Bitcoin ETFs could lead to similar gains, albeit within a shorter time frame of one to two years, due to the expected rapid development of the Bitcoin ETF market.
ETF-Related Inflows: A Game-Changer
By Standard Chartered's assumptions, the influx of funds through ETFs could propel Bitcoin’s price to the coveted $200,000 mark by the end of 2025. The bank projects that between 437,000 and 1.37 million new Bitcoins will be held in spot US ETFs by the close of 2024, amounting to approximately USD 50-100 billion in USD terms.
Currently, nearly a dozen asset managers, including industry giants like BlackRock, Fidelity, and Ark Invest, are eagerly awaiting SEC approval for their ETF applications. The anticipation is high, with the final deadline for Ark’s application set for Wednesday.
All Eyes On SEC
The fact that these sponsors have unveiled exceptionally low management fees adds to the intrigue, signaling potential massive assets under management (AUM) expectations.
Standard Chartered's bullish projection of Bitcoin reaching $200,000 by the end of 2025 relies on the successful approval of Bitcoin spot ETFs. If these expectations materialize, the cryptocurrency market could witness a substantial transformation in the coming years. Investors and industry watchers are keenly observing the developments, particularly the imminent decisions by the SEC regarding ETF approvals.
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