Standard Chartered, a British multinational bank, has projected that Bitcoin (BTC) will reach a value of $200,000 by the end of 2025. This prediction indicates a more than 300% increase from its current trading value. The bank’s research note released on Monday suggests that the imminent approval of Bitcoin spot ETFs could result in an absorption of $50 billion to $100 billion worth of flows within a year.
The bank’s inflow estimates are based on the performance of the first gold ETF that reached the U.S. market in November 2004. Bitcoin is often compared to gold in financial circles due to its scarcity and reliability as a store of value. A Bitcoin ETF, similar to the gold ETF, would provide investors with easy and familiar access to the asset’s price without the need to deal with the complexities of storing the asset themselves.
Standard Chartered’s analysts, including digital asset research lead Geoff Kendrick and precious metals analyst Suki Cooper, explained that the price of gold increased 4.3 times in the seven to eight years following the introduction of the first ETP. They expect a Bitcoin ETF to trigger similar gains, but in a shorter time frame of one to two years, as the Bitcoin ETF market is expected to develop more quickly.
According to the bank’s assumptions, such inflows could drive Bitcoin’s price to an end-2025 level closer to $200,000. This prediction is based on the assumption that between 437,000 and 1.37 million new Bitcoin will be held in spot US ETFs by the end of 2024, which in USD terms, should be roughly $50-100 billion.
Last month, Standard Chartered estimated that BTC will reach $100,000 by the end of 2024, driven by both ETF approvals and the upcoming Bitcoin halving. Nearly a dozen asset managers, including BlackRock, Fidelity, and Ark Invest, are awaiting SEC approval on their ETF applications this week. The agency’s final deadline to approve or deny Ark’s application is on Wednesday.
Most sponsors have unveiled exceptionally low management fees for their products, which some interpret as a sign that these providers may have massive AUM expectations to be able to sustain such low fees. As excitement around ETFs grows, Bitcoin reached another multi-year high of $47,100 on Monday.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇬🇧 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Suki Cooper, Geoff Kendrick |
| Companies | Ark Invest, Binance Futures, Standard Chartered, Fidelity, BlackRock |
| Currencies | united states dollar, Bitcoin |
| Securities | None |
