Standard Chartered has highlighted the likelihood of the U.S. Securities and Exchange Commission (SEC) approving spot Bitcoin (BTC) ETFs possibly within the week. The bank views the approval as a significant factor that could trigger a substantial rise in BTC prices, aligning with its previous projection of Bitcoin reaching $100,000 by the end of 2024.
Drawing parallels with the historical experience of gold-focused Exchange Traded Products (ETPs), Standard Chartered analyzes the impact of the first U.S.-based gold ETP launched in November 2004. The analysis reveals that gold prices increased by 4.3 times over seven to eight years as gold ETP assets matured.
Based on this comparison, Standard Chartered anticipates similar price surges for Bitcoin but within a more condensed timeframe, predicting gains within one to two years. This acceleration is linked to expectations of rapid development in the Bitcoin ETF market.
Standard Chartered projects that by the end of 2024, Bitcoin could reach $100,000, and with ETF-related inflows materializing as expected, it foresees even more significant growth, with Bitcoin potentially nearing $200,000 by the end of 2025. The bank estimates that between 437,000 to 1.32 million new Bitcoins could be held in spot ETFs by the end of 2024, equivalent to $50-100 billion USD.
The imminent approval of Bitcoin spot ETFs represents a transformative phase for the crypto market, particularly in increasing institutional participation. Standard Chartered’s predictions point not only to significant potential price gains but also to an accelerated timeline for these gains to materialize. As investors and market participants navigate this evolving landscape, staying informed about regulatory developments and institutional trends becomes increasingly crucial. The potential approval of spot Bitcoin ETFs marks a pivotal moment, unlocking new possibilities for the digital asset and shaping its trajectory in the years to come.