Spot ETFs Approval May Boost Bitcoin Price to $200K by Late 2025: Standard Chartered

Jimmy Aki
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Standard Chartered Bank has predicted that the approval of spot Bitcoin exchange-traded funds (ETFs) could propel the price of BTC to $200,000 by the end of 2025.

Deep Dive into BTC Market Projections

Standard Chartered Bank has predicted that the approval of Bitcoin spot ETFs could result in a remarkable 344% surge in the cryptocurrency’s value by the end of the next year.

According to Standard Chartered Bank’s latest report led by Head of Crypto Research Geoffrey Kendrick, this projection is contingent on the expectation that the Securities and Exchange Commission (SEC) might approve spot Bitcoin ETFs, specifically on January 10.

The bank envisions these ETFs could attract an impressive annual inflow between $50 billion and $100 billion if they receive approval.

In the forecast analysis, Kendrick posits that between 437,000 and 1.32 million new bitcoins will be accumulated within the U.S. spot ETFs market by the conclusion of 2024. If the anticipated ETF-related inflows materialize, a substantial BTC price of $200,000 per token can be achieved by the end of 2025.

The Head FX Researcher drew a parallel between this projection and the introduction of the first gold spot exchange-traded product, SPDR Gold Shares (GLD), in 2004. He noted that adjusting for relative market caps, BTC ETFs could see approximately $34 billion in inflows, similar to GLD’s impact on the gold market.

Additionally, Kendrick points out that the demand for Bitcoin could substantially impact its price, especially considering the decreasing availability of immediate supply.

Nevertheless, he expressed that the current measure of immediately available supply as a percentage of the total circulating supply is at an all-time low, making Bitcoin’s supply more price-inelastic.

Asset Managers Bullish Insights Aligns with Standard Chartered Valuations

Several applicants for spot Bitcoin ETFs are anticipating substantial capital inflows into the market upon approval. Among them, VanEck stands out, projecting an impressive $1 billion inflow within the initial days post-approval.

Notably, the asset manager estimates a significant $2.4 billion inflow into the budding ETF industry in Q1, preventing BTC, currently trading at $46.8K per token, from dipping below $30K.

Source: CoinMarketCap BTC Data

Galaxy, another applicant, is even more optimistic, predicting inflows of $14.4 billion within the first year.

Source: Galaxy Projection Report on BTC

Taking a longer-term perspective, Bitwise forecasts a substantial expansion. The firm believes spot Bitcoin ETFs can secure 1% of the extensive $7.2 trillion U.S. ETF market or an impressive $72 billion in Assets Under Management (AUM).

Bitcoin Inscription Can be the Underrated Drive for Moonshot

Amidst the red-hot attention on spot Bitcoin ETFs, Jamie Coutts, a Blockchain strategist affiliated with Pragmatic Blockchain Research, revealed that Bitcoin fundamentals could be an essential factor to consider in evaluating price growth.

In a post on January 8, Coutts highlighted that the asset fundamentals have reached an all-time high, as depicted in a logarithmic graph he shared.

Coutts pointed out that Bitcoin’s network fundamentals are robust, citing novel use cases like inscriptions. According to his analysis, these fundamentals have been strongest since the 2016-2017 cycle.

The strategist’s broader perspective considers the evolving applications and utility of Bitcoin, contributing to its overall resilience and potential for sustained growth.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.