Standard Chartered Bank predicted in a report on the 8th that Bitcoin could attract investments of up to $500 to $1000 billion after gaining approval for a spot ETF, which would significantly drive up the price of Bitcoin to $200,000 by the end of 2025.
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The fate of the Bitcoin spot ETF reached a critical point this week, and the market has been discussing whether its approval will bring in a large influx of funds, further boosting the price of Bitcoin.
Standard Chartered Bank predicted in a report to investors on the 8th that Bitcoin could attract investments of up to $500 to $1000 billion after gaining approval for a spot ETF, thereby driving up the price of Bitcoin to $200,000 by the end of 2025.
Comparing with Gold ETPs
Standard Chartered Bank used gold ETPs (ETPs are a broad category of exchange-traded products, including ETFs and ETNs) as a benchmark to estimate the potential influx of funds and its impact on the price of Bitcoin from a spot ETF. They reviewed the market performance after the introduction of gold ETPs in 2004 and noted that the price of gold increased by about 4.3 times in the following seven to eight years.
Based on this comparison, Standard Chartered Bank expects that Bitcoin will experience a similar upward trend in price after the approval of a spot ETF. However, the bank believes that the Bitcoin ETF market will develop faster than the gold ETP market, potentially leading to significant appreciation of Bitcoin in a shorter period of time (about one to two years).
According to the bank’s forecast, by the end of 2024, US-listed Bitcoin spot ETFs could hold approximately 437,000 to 1.32 million Bitcoins, corresponding to an injection of $500 to $1000 billion. The report stated:
Standard Chartered Bank also added that this forecast is consistent with its previous estimate that Bitcoin could reach $100,000 by the end of 2024, which was based on the expectation of spot ETF approval and the impact of the Bitcoin halving event.
Further Reading:
How high can Bitcoin fly in 2024? This institution boldly claims “$500,000”
Bloomberg’s Chief Economist: Now is not the time to increase investment
However, Bloomberg’s Senior Commodity Strategist Mike McGlone expressed doubts about the price trend of Bitcoin after the potential approval of an ETF during a conversation on the Macro Monday talk show with host Scott Melker on the 8th.
McGlone proposed that high-risk assets usually face pressure for a pullback, and Bitcoin is one of such assets. He said:
Regarding the future trend of Bitcoin, McGlone maintains a cautious attitude. He pointed out:
These comments suggest that the current market optimism may be excessive, and investors should remain cautious.
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