Source: Standard Chartered Bank
According to Standard Chartered Bank’s latest report led by Head of Crypto Research Geoffrey Kendrick, Bitcoin price would grow exponentially once the U.S. Securities and Exchange Commission (SEC) approves the long-anticipated Bitcoin ETF.
Bitcoin ETFs Could Bring $50-$100 Billion Inflows
The bank’s analysis drew a parallel between the anticipated impact of spot Bitcoin ETFs and the historical influence of gold ETFs on the gold market.
Citing the introduction of the SPDR Gold Shares (GLD) ETF in 2004, the bank demonstrated how gold ETFs substantially increased investor access and resulted in significant inflows.
— Bitcoin Archive (@BTC_Archive) January 8, 2024
“When GLD was introduced in November 2004, the total stock of above-ground gold was worth around $2.2 trillion, compared with BTC’s current market cap of $0.86 trillion,” wrote the report. “Adjusting the $88 billion of GLD inflows for relative market caps would suggest $34 billion of inflows to BTC ETFs.”
The $34 billion estimation was projected on the lower end, while the report’s higher speculation reached $130 billion with a range of $50-$100 billion being “reasonable.”
Bitcoin Price to Reach $100,000 in 2024 and $200,000 in 2025
With the massive inflows in sight, Standard Chartered Bank predicted Bitcoin price to surge as gold price did when GLD started trading.
“The price of gold rose 4.3x in the seven to eight years it took for gold ETP holdings to mature after the first ETP was introduced,” wrote the report.
“We expect Bitcoin to enjoy price gains of a similar magnitude as a result of US spot ETF approval,” wrote the report. “This is consistent with our end-2024 view of Bitcoin at the USD 100,000 level. If ETF-related inflows materialise as we expect, we think an end-2025 level closer to USD 200,000 is possible.”
Previously, VanEck CEO Jan van Eck said Bitcoin price could reach all-time high in 2024 in an interview with CNBC. van Eck also illustrated the similarity between the performances of Bitcoin and gold in 2023.
“They both peaked in 2021; they’ve both been rallying this year, obviously Bitcoin way more than gold for obvious reasons,” said van Eck.
Other major Bitcoin ETF issuers like Galaxy and Bitwise have also predicted Bitcoin to pump as an imminent impact of the pending approval. The SEC is expected to decide on the applications on Jan. 10 while the spot Bitcoin ETFs may start trading as soon as Jan. 11 if approved.
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