Spot Bitcoin ETF Launches Could Attract Inflows Up To $100 Billion In 2024, Pushing BTC To $200K In 2025, Standard Chartered Says

BySteven Walgenbach

Updated: 09 January 2024

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The approval of spot Bitcoin ETFs could attract up to $100 billion in new inflows this year and help the BTC price skyrocket to as high as $200,000 in 2025, Standard Chartered said.

The potential approval of spot Bitcoin ETFs, which is widely expected this week, would be a “watershed moment” for crypto that may boost participation by institutional investors in Bitcoin, said analysts led by Geoff Kendrick in a Jan. 8 note.

Standard Chartered posting some moon math! $200,000 coming pic.twitter.com/IQueMhjgiP

— Lark Davis (@TheCryptoLark) January 9, 2024

Kendrick said that inflows of between $50-$100 billion in 2024 “seems reasonable” and didn’t rule out as high as $130 billion, though he added that such a forecast would likely be ”too high.”

Bitcoin ETF Launches Could Help BTC Soar To $200,000 By 2025

Standard Chartered expects Bitcoin ETF launches to revolutionize investor access to Bitcoin in the same way that gold ETFs did for gold previously, only in a shorter time frame. Whereas it took seven to eight years for gold to rise 4.3 times, it expects that within one to two years for Bitcoin.

“We expect bitcoin to enjoy price gains of a similar magnitude as a result of U.S. spot ETF approval, but we see these gains materializing over a shorter (one- to two-year) period, given our view that the BTC ETF market will develop more quickly,” he said. “This is consistent with our end-2024 view of bitcoin at the $100,000 level. If ETF-related inflows materialize as we expect, we think an end-2025 level closer to $200,000 is possible. This assumes that between 437,000 and 1.32 million new bitcoins will be held in spot U.S. ETFs by end-2024. In USD terms, this should be roughly $50-100 billion.”

Bitcoin ETFs To Attract Billions Of Dollars

Several applicants also expect billions of dollars to enter the cryptocurrency ecosystem. VanEck predicted that $1 billion will enter the space within the first few days, while it anticipates $2.4 billion will enter the market within a quarter after the first approval.

Galaxy expects a $14 billion capital injection within the first year, while Bitwise sees the market growing to $72 billion within 5 years.

Standard Chartered added that the so-called ”crypto winter” is over with the crypto industry likely to be boosted by falling interest rates and the improved profitability of crypto miners.