Standard Chartered Bank is the last to make predictions about the impact Discover Bitcoin ETFs could have a negative effect on Bitcoin’s price in the long term. The bank took a bullish stance when they predicted that BTC could soar to unprecedented heights by the end of 2025.
Bitcoin could reach $200,000 by the end of 2024
This is evident from a report by Standard Chartered shared on the X platform (formerly Twitter), the price of BTC could reach $200,000 by the end of 2025. There is potential for Bitcoin to reach this price level, with $50 to $100 billion flowing into the market Discover Bitcoin ETFssay the bank’s head of Digital Assets Research Geoff Kendrick and precious metals analyst Suki Cooper.
Their projections stem from the fact that an approval of these Spot Bitcoin ETFs could happen as soon as this week. If that happens, Kendrick and Cooper argue, it will be a major driver of Bitcoin’s price, something similar to what happened with gold ETPs. Interestingly, Standard Chartered predicts that BTC could reach $100,000 before this year is out.
Further developing BTC enjoy similar gains to gold (when Gold ETPs were approved), the bank expects such gains to materialize over a shorter period of time for the flagship crypto token. This is based on their view that the Spot BTC ETF market will develop faster than the Gold ETPs.
The amount of inflows that these Spot Bitcoin ETFs could witness is still up for debate. Crypto research firm Galaxy Digital took a more conservative stance they project that only about $14 billion will flow to these funds in the first year. In the meantime, VanEck’s advisor, Gabor Gurbacsonly chooses to look at the long term.
BTC reaches new 1-year high | Source: BTCUSD on Tradingview.com
“Trillions, not billions” in the long run
Commenting on Standard Chartered’s report, Gurbacs named that he would rather look at how much can flow into these funds in the longer term than now. With that in mind, he expects there will be trillions of dollars flows into Spot Bitcoin ETFs in the long-term. Specifically, he is calling for $2.5 trillion to flow into these BTC assets.
He explained that this could easily happen, given that there are approximately $500 trillion in assets worldwide. As such, $2.5 trillion, representing just 0.5% of the global allocation, flowing into the Bitcoin ecosystem should not be a problem. He also bases his forecast on the fact that Bitcoin will not stop rising in value fiat currencies continue to weaken. BTC has no top because fiat has no bottom, he says.
Gurbacs also expects Bitcoin to enjoy more acceptance once these Spot Bitcoin ETFs are approved. He says banks, financial services providers and regulators will turn from “enemies of Bitcoin to allies of Bitcoin.” This is “immeasurably valuable” as BTC adoption can achieve, he noted.
Featured image from Premium Times, chart from Tradingview.com
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.