Standard Chartered: Spot Bitcoin ETFs May Drive $100B Inflows; Propel BTC to $200K by 2025

Standard Chartered
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If spot Bitcoin ETFs get approved, there’s potential for a substantial influx of up to $100 billion in new investments this year. Standard Chartered suggests that such approval could propel the price of BTC to soar, reaching as high as $200,000 by the year 2025. It’s a significant projection that underscores the potential impact of regulatory decisions on the cryptocurrency market.

Spot Bitcoin ETF Approval: A Potential Watershed Moment

The anticipated approval of spot Bitcoin ETFs this week could mark a significant turning point for the crypto market, potentially enticing greater participation from institutional investors in Bitcoin. Analysts, led by Geoff Kendrick, believe that inflows ranging between $50-$100 billion in 2024 appear reasonable.

While not dismissing the possibility of reaching as high as $130 billion, Kendrick also notes caution, suggesting that such an optimistic forecast might be on the higher side. This projection reflects the transformative impact that regulatory decisions can have on cryptocurrency dynamics.

Standard Chartered’s Outlook on Bitcoin ETF Launches

Standard Chartered foresees the approval of Bitcoin ETFs triggering a transformative shift in investor access to Bitcoin, paralleling the impact gold ETFs had on the gold market but at an accelerated pace. The bank draws a comparison, highlighting that while gold took seven to eight years to surge 4.3 times after the introduction of ETFs, Bitcoin is expected to witness similar gains within a much shorter period of one to two years.

According to Geoff Kendrick, Standard Chartered’s analyst, the anticipation is that Bitcoin will experience substantial price appreciation, aligning with the approval of U.S. spot ETFs. The bank envisions this rapid development in the BTC ETF market leading to significant gains, consistent with their end-2024 projection of Bitcoin reaching $100,000.

If the expected ETF-related inflows materialize, Kendrick suggests that a level close to $200,000 by the end of 2025 is plausible. This forecast is based on the assumption that between 437,000 and 1.32 million new bitcoins will be held in spot U.S. ETFs by the conclusion of 2024, translating to an estimated value of $50-100 billion in USD terms.

Anticipated Inflows and the End of “Crypto Winter”

Several key players in the cryptocurrency industry are anticipating substantial capital inflows following the potential approval of spot Bitcoin ETFs. VanEck, one of the applicants, foresees an influx of $1 billion into the cryptocurrency space in the initial days post-approval, with an expectation of $2.4 billion entering the market within a quarter after the first approval.

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Galaxy, another participant, has even more optimistic projections, envisioning a significant capital injection of $14 billion within the first year. On a longer-term horizon, Bitwise anticipates substantial growth, predicting the market to expand to $72 billion within the next five years.

In a broader context, Standard Chartered analysts assert that the so-called “crypto winter” is now behind us. They posit that the cryptocurrency industry is poised for a resurgence, driven by declining interest rates and the improved profitability of crypto miners. This outlook suggests a positive trajectory for the crypto market, dispelling the challenges associated with the previous downturn.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.


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