crypto for all
A
A

Bitcoin - Standard Chartered sees $200,000

Tue 09 Jan 2024 ▪ 3 min of reading ▪ by Nicolas T.
Invest

Standard Chartered Bank foresees Bitcoin hitting 100,000 dollars this year, and 200,000 dollars next year.

Bitcoin ETF

100 Billion

The Standard Chartered Bank believes that the SEC will give the green light to a Bitcoin ETF this week and that 50 to 100 billion dollars will be invested in it as early as this year.

The bank has drawn a parallel between the Bitcoin ETF and the very first gold-backed ETF. It based its predictions on the first American ETF, SPDR Gold Shares (GLD).

The GLD is currently the world’s largest physically backed gold ETF. It was launched in November 2004. At that time, the total stock of gold that had been mined was worth approximately 2.2 trillion dollars.

This is to be compared with the 860 billion dollars that Bitcoin is worth today. All things considered, “the 88 billion dollars that flowed into GLD in the first year suggests 34 billion dollars of inflows into Bitcoin ETFs,” the note reads.

This figure corresponds to the low end of Standard Chartered’s expectations. The bank estimates the high end to be 130 billion dollars. “Our range is between 50 and 100 billion dollars for 2024, which seems reasonable.”

The approval of Bitcoin ETFs is a “decisive moment” for the normalization of institutional investor participation. Knowing that “the price of gold was multiplied by 4.3 over the seven to eight years following the introduction of GLD.”

“We expect Bitcoin to show a similar increase in the wake of the ETF approval. But more rapidly (one to two years)”, the bank stated.

“This is consistent with our view of Bitcoin reaching 100,000 dollars by the end of the year. If the capital inflows materialize as we predict, we believe Bitcoin could reach 200,000 dollars by the end of 2025.”

Standard Chartered Bank adds that between 400,000 and 1.3 million bitcoins will be held by ETFs by the end of 2024. “In dollar terms, this should represent about 50 to 100 billion.”

And in ten years?… Hold!

Maximize your Cointribune experience with our 'Read to Earn' program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.


Click here to join 'Read to Earn' and turn your passion for crypto into rewards!
A
A
Nicolas T. avatar
Nicolas T.

Bitcoin, geopolitical, economic and energy journalist.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.