Standard Chartered highlighted that the US Securities and Exchange Commission (SEC) is expected to approve a Spot Bitcoin (BTC) ETF this week. The approval of the ETF is in line with Standard Chartered’s previous prediction that BTC will reach $100,000 by the end of 2024 and is seen as a major factor that could lead to a significant increase in Bitcoin prices.
Charting a Route: Lessons from Gold ETPs
Standard Chartered draws parallels with past experience with gold-focused exchange-traded products (ETPs) to assess the potential impact of BTC ETF approval. Analysis from the launch of the first US-based gold ETP in November 2004 shows that gold prices increased by 4.3 times over 7-8 years as gold ETP assets matured.
Based on this comparison, Standard Chartered predicts that Bitcoin will experience a similar price increase, but at a more intense period. Therefore, we expect it to take one to two years for revenues to be realized. This momentum is driven by expectations that the BTC ETF market will develop rapidly.
Market Predictions: $100,000 to Potential $200,000
Standard Chartered predicts that Bitcoin will reach $100,000 by the end of 2024, and even more significant growth is expected if ETF-related inflows occur as expected. This prediction assumes that Bitcoin will reach a value of almost $200,000 by the end of 2025.
To achieve this, Standard Chartered envisions holding between 437,000 and 1.32 million new Bitcoins in spot ETFs by the end of 2024. This equates to between $50 billion and $100 billion in US dollars.
Navigating the Bitcoin Landscape: Implications and Opportunities
The upcoming approval of the Bitcoin Spot ETF marks a transformational phase for the crypto market, especially in terms of increased participation from institutional investors. Standard Chartered’s forecasts suggest not only the potential for significant price increases, but also an accelerated timeline for these increases to occur.
