Standard Chartered Bank is the most recent to offer its predictions on the impression Spot Bitcoin ETFs may have on Bitcoin’s worth in the long run. The financial institution took a bullish stance as they predicted that BTC may rise to unprecedented heights by the tip of 2025.
Bitcoin Could Hit $200,000 By End Of 2024
According to a report by Standard Chartered shared on the X (previously Twitter) platform, BTC’s worth may attain $200,000 by end-2025. There is the potential for Bitcoin to hit this worth degree with $50 to $100 billion flowing into the Spot Bitcoin ETFs, says the financial institution’s Head of Digital Assets Research Geoff Kendrick and Precious Metal Analyst Suki Cooper.
Their projections stem from the truth that an approval of those Spot Bitcoin ETFs may occur as quickly as this week. If that occurs, Kendrick and Cooper state that will likely be a key driver of Bitcoin’s worth to the upside, one thing much like what occurred with Gold ETPs. Interestingly, Standard Chartered predicts that BTC may hit $100,000 earlier than this yr runs out.
Elaborating on BTC enjoying similar gains to Gold (when Gold ETPs have been accepted), the financial institution expects that such features will materialize over a shorter interval for the flagship crypto token. This is predicated on their view that the Spot BTC ETF market will develop faster than the Gold ETPs did.
The quantity of inflows that these Spot Bitcoin ETFs may witness has continued to be up for debate. Crypto analysis agency Galaxy Digital took a extra conservative stance as they project that solely about $14 billion will move into these funds within the first yr. Meanwhile, VanEck’s advisor, Gabor Gurbacs, is simply selecting to take a look at the long run.
BTC reaches new 1-year excessive | Source: BTCUSD on Tradingview.com
“Trillions, Not Billions” In The Long Term
Commenting on Standard Chartered’s report, Gurbacs mentioned that he prefers to take a look at how a lot may move into these funds in the long term somewhat than now. With that in thoughts, he tasks that trillions of {dollars} will flow into Spot Bitcoin ETFs in the long run. Specifically, he makes a case for $2.5 trillion flowing into these BTC belongings.
He defined that this might simply occur, contemplating that there are roughly $500 trillion in belongings globally. As such, $2.5 trillion, representing simply 0.5% of the worldwide allocation, flowing into the Bitcoin ecosystem shouldn’t be an issue. He additionally bases his projection on the truth that Bitcoin gained’t cease rising in worth as fiat currencies continue to weaken. BTC has no prime as a result of fiat has no backside, he says.
Gurbacs additionally expects that Bitcoin will take pleasure in more acceptance as soon as these Spot Bitcoin ETFs are accepted. He says that banks, monetary service corporations, and regulators will flip from “enemies of Bitcoin to allies of Bitcoin.” This is “immeasurably valuable” as BTC adoption can degree, he remarked.
Featured picture from Premium Times, chart from Tradingview.com
Disclaimer: The article is offered for instructional functions solely. It doesn’t signify the opinions of NewsBTC on whether or not to purchase, promote or maintain any investments and naturally investing carries dangers. You are suggested to conduct your personal analysis earlier than making any funding selections. Use info offered on this web site completely at your personal danger.
