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Spot Bitcoin ETFs- Anticipating a substantial surge in Bitcoin’s value, Standard Chartered Bank projects a potential peak of $200,000 by 2025. This forecast hinges on the approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
In their recent report, led by Head of Crypto Research Geoffrey Kendrick, the bank underscores the prospect of exponential growth in Bitcoin’s price upon the much-anticipated approval of a Bitcoin ETF by the SEC.
Potential Inflows: Spot Bitcoin ETFs Envision $50-$100 Billion Boost
Standard Chartered Bank’s analysis draws a parallel between the anticipated impact of spot Bitcoin ETFs and the historical influence of gold ETFs on the gold market.
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
The bank points to the introduction of the SPDR Gold Shares (GLD) ETF in 2004 as a significant example. In this case, gold ETFs played a pivotal role in enhancing investor access and consequently led to substantial inflows into the gold market.
In drawing a parallel between the launch of the SPDR Gold Shares (GLD) ETF in November 2004 and the potential impact of Bitcoin ETFs, Standard Chartered Bank’s report highlights a significant difference in market caps. At the time of GLD’s introduction, the total stock of above-ground gold was valued at approximately $2.2 trillion, significantly exceeding BTC’s current market cap of $0.86 trillion.
Adjusting for these relative market caps, the analysis suggests that BTC ETFs could attract inflows ranging from $34 billion on the lower end to a higher speculation of $130 billion. The report deems a reasonable estimate to fall within the range of $50-$100 billion.
Spot Bitcoin ETFs- Bitcoin Price Surge Anticipation
Standard Chartered Bank forecasts a significant surge in Bitcoin prices akin to the trajectory observed in the gold market when gold exchange-traded products (ETPs) were introduced. Drawing a parallel, the report notes that the price of gold increased by 4.3 times over the seven to eight years following the launch of gold ETPs.
🔥#Bitcoin Could Hit $200,000 by December 2025, Says #Standard #Chartered Bank 🚀🚀
— Ben Harper Binance (@benharperbrasil) January 9, 2024
" The Bank Argued In A Monday Research Note That #Bitcoin Spot ETFs – Which Are Expected To Receive “Imminent” Approval – May Absorb $50 Billion To $100 Billion Worth Of Flows Within A Year. " 📈 pic.twitter.com/HQvPimEy9Y
The bank anticipates a comparable magnitude of price gains for Bitcoin upon the approval of U.S. spot ETFs, aligning with their end-2024 projection of Bitcoin reaching $100,000. Should ETF-related inflows materialize as expected, the bank believes an end-2025 level closer to $200,000 is conceivable.
In a related context, Jan van Eck, CEO of VanEck, previously suggested on CNBC that Bitcoin’s price could attain an all-time high in 2024. van Eck drew parallels between the performance of Bitcoin and gold in 2023, emphasizing the potential for a remarkable upward trajectory.
The market eagerly awaits the decision by the U.S. Securities and Exchange Commission (SEC) on January 10 regarding the pending applications, with potential trading of spot Bitcoin ETFs poised to commence as early as January 11 if the approvals are granted.
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