Standard Chartered Bank is the most recent to present its predictions on the influence Spot Bitcoin ETFs might have on Bitcoin’s worth in the long run. The financial institution took a bullish stance as they predicted that BTC might rise to unprecedented heights by the top 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 might 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 might occur as quickly as this week. If that occurs, Kendrick and Cooper state that might be a key driver of Bitcoin’s worth to the upside, one thing just like what occurred with Gold ETPs. Interestingly, Standard Chartered predicts that BTC might hit $100,000 earlier than this 12 months runs out.
Elaborating on BTC having fun with related positive aspects to Gold (when Gold ETPs had been authorized), the financial institution expects that such positive aspects will materialize over a shorter interval for the flagship crypto token. This relies 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 might witness has continued to be up for debate. Crypto analysis agency Galaxy Digital took a extra conservative stance as they venture that solely about $14 billion will stream into these funds within the first 12 months. Meanwhile, VanEck’s advisor, Gabor Gurbacs, is simply selecting to have 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 talked about that he prefers to have a look at how a lot might stream into these funds in the long run relatively than now. With that in thoughts, he tasks that trillions of {dollars} will stream into Spot Bitcoin ETFs in the long run. Specifically, he makes a case for $2.5 trillion flowing into these BTC property.
He defined that this might simply occur, contemplating that there are roughly $500 trillion in property 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 proceed to weaken. BTC has no high as a result of fiat has no backside, he says.
Gurbacs additionally expects that Bitcoin will get pleasure from extra acceptance as soon as these Spot Bitcoin ETFs are authorized. He says that banks, monetary service companies, 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
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