Standard Chartered compares the Bitcoin ETF launch to the Gold ETF launch of 2004. It expects the BTC price to rally all the way to $200,000 in two years post the ETF approval.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
Market analysts predict that the Securities and Exchange Commission (SEC) is on the verge of approving spot bitcoin exchange-traded funds (ETFs) this week, potentially opening the floodgates for substantial inflows ranging between $50 to $100 billion throughout the year. This anticipation comes from insights provided by Standard Chartered Bank.
Drawing parallels with the transformative impact of gold ETFs, the bank envisions a similar revolution in investor access to the bitcoin market through the introduction of spot bitcoin ETFs. The comparison is with the launch of the first US-based gold ETF, SPDR Gold Shares (GLD), in 2004, which has since become the largest physically backed gold ETF globally. In a note on Monday, January 8, Standard Chartered Bank analysts led by Geoffrey Kendrick wrote:
“When GLD was introduced in November 2004, the total stock of above-ground gold was worth around $2.2 trillion, compared with Bitcoin’s current market cap of $0.86 trillion. Adjusting the $88 billion of GLD inflows for relative market caps would suggest $34 billion of inflows to BTC ETFs.”
The bank also anticipates a potential flow on the lower side of its projection. On the opposite end, it foresees inflows reaching $130 billion, considering an estimated range of $50-100 billion in 2024 as reasonable.
Various applicants for spot bitcoin ETFs also envision substantial capital entering the market. For example, VanEck predicts $1 billion in inflows within the initial days and $2.4 billion within a quarter. Galaxy also forecasts inflows of $14 billion in the first year, while Bitwise looks ahead to a market size of approximately $72 billion within the next five years.
As anticipation builds around the approval of Bitcoin spot ETF applications, Standard Chartered Bank has made a bold prediction, stating that the price of Bitcoin could surpass $200,000 by the end of 2025.
Furthermore, in a note to investors on Monday, Geoffrey Kendrick, the head of financial research at Standard Chartered Bank, expressed optimism, stating that if ETF-related inflows materialize as expected, a year-end 2025 level closer to $200,000 is conceivable.
This forecast aligns with the bank’s previous estimates, where they anticipated Bitcoin reaching $100,000 by the close of 2024.
BREAKING‼️Global banking giant Standard Chartered says $50-$100 BILLION could flow into #Bitcoin ETFs in 2024 pic.twitter.com/yQobJcs6EA
— Bitcoin Archive (@BTC_Archive) January 8, 2024
“ETF approval is a key driver of BTC price upside,” Kendrick said. “We see this as a watershed moment for normalizing Bitcoin participation by institutional money, and we expect approval to drive significant inflow and price upside for BTC.”
Kendrick’s statement reflects the bank’s confidence in the potential impact of approved Bitcoin ETFs on the cryptocurrency’s price trajectory. The financial world awaits developments in the ETF space, as these predictions hint at the transformative influence ETFs could exert on Bitcoin’s value in the coming years.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
