British multinational bank Standard Chartered has made a bullish projection for Bitcoin (BTC), forecasting that the cryptocurrency will surge to $200,000 by the end of 2025. This ambitious target implies a remarkable 300% increase from its current trading value.
In a research note published on Monday, Standard Chartered highlighted the pivotal role of Bitcoin spot ETFs, anticipating their “imminent” approval. The bank suggests that these ETFs could attract substantial flows, ranging from $50 billion to $100 billion within a year.
Standard Chartered Drawing Parallels with Gold ETFs
Drawing parallels with the gold market, the bank based its inflow estimates on the performance of the first gold ETF introduced to the U.S. market in November 2004. Gold is often likened to Bitcoin as a scarce form of money and a reliable store of value.
A Bitcoin ETF, similar to its gold counterpart, would provide investors with convenient access to the asset’s price without the complexities of self-storage.
Standard Chartered analysts, including digital asset research lead Geoff Kendrick and precious metals analyst Suki Cooper, expect a Bitcoin ETF to trigger substantial gains within a shorter time frame of one to two years. Comparing it to the seven to eight years it took for gold ETF holdings to mature, the bank anticipates a similar magnitude of gains for Bitcoin.
The bank’s assumptions hinge on the influx of 437,000 to 1.37 million new Bitcoins into spot US ETFs by the end of 2024, amounting to an estimated $50-100 billion in USD terms. This influx could potentially propel Bitcoin’s price to the forecasted $200,000 level by the end of 2025.
ETF Approval Deadline Approaches
As anticipation for ETF approvals intensifies, major asset managers such as BlackRock, Fidelity, and Ark Invest are eagerly awaiting SEC approval for their applications. With the final decision for Ark’s application due on Wednesday, the cryptocurrency market is closely watching the potential implications for Bitcoin’s future.
Amidst the growing excitement surrounding ETFs, Bitcoin achieved another milestone by reaching a multi-year high of $47,100 on Monday. The cryptocurrency’s upward trajectory continues to be influenced by various factors, including institutional interest and market sentiment..