Standard Chartered Bank has forecasted a substantial surge in the value of Bitcoin, potentially reaching up to $200,000 in 2025. This optimistic prediction is contingent on the approval of a spot Bitcoin exchange-traded fund (ETF).
The latest report from Standard Chartered Bank, spearheaded by Head of Crypto Research Geoffrey Kendrick, suggests that the price of Bitcoin could experience exponential growth once the U.S. Securities and Exchange Commission (SEC) gives the green light to the eagerly anticipated Bitcoin ETF. This projection reflects the bank’s expectation that regulatory advancements, such as ETF approvals, could play a pivotal role in driving Bitcoin’s value to new heights.
Bitcoin ETFs Could Bring $50-$100 Billion Inflows
The bank’s analysis drew parallels between the anticipated impact of spot Bitcoin ETFs and the historical influence of gold ETFs on the gold market. The report specifically cited the introduction of the SPDR Gold Shares (GLD) ETF in 2004, demonstrating how gold ETFs significantly enhanced investor access and led to substantial inflows.
The report pointed out that when GLD was introduced in November 2004, the total stock of above-ground gold was valued at around $2.2 trillion, compared to Bitcoin’s current market cap of $0.86 trillion. Adjusting for relative market caps, the report estimated that BTC ETFs could potentially see inflows ranging from $34 billion on the lower end to as high as $130 billion. The report considered a range of $50-$100 billion as a “reasonable” estimation within this spectrum.
Bitcoin Price to Reach $100,000 in 2024 and $200,000 in 2025
Envisaging substantial inflows, Standard Chartered Bank anticipates a surge in Bitcoin’s price, drawing a comparison with the increase in gold prices when the GLD ETF commenced trading.
The report highlighted that the price of gold experienced a 4.3x rise over seven to eight years as gold ETP holdings matured following the introduction of the first ETP. Standard Chartered Bank expects Bitcoin to undergo similar price gains, projecting a level of USD 100,000 by the end of 2024. If the anticipated ETF-related inflows materialize, the report suggests that reaching a level closer to USD 200,000 by the end of 2025 is plausible. This outlook aligns with the bank’s expectation that the approval of a US spot ETF could significantly impact Bitcoin’s value.
VanEck CEO Jan van Eck previously stated in an interview with CNBC that the price of Bitcoin could reach an all-time high in 2024. Van Eck drew parallels between the performances of Bitcoin and gold in 2023, noting that both peaked in 2021 and have been experiencing rallies in the subsequent year. He highlighted that Bitcoin has outperformed gold significantly for evident reasons.
Other major Bitcoin ETF issuers, such as Galaxy and Bitwise, have also made predictions anticipating a surge in Bitcoin’s price, attributing it to the potential approval of pending ETF applications. The Securities and Exchange Commission (SEC) is expected to make decisions on these applications by January 10, and if approved, spot Bitcoin ETFs could commence trading as early as January 11. The pending approval is seen as a key factor driving optimism and speculation in the cryptocurrency market.
