Standard Chartered Eyes $200K for BTC by Late 2025 With Spot Bitcoin ETFs in Play

Standard Chartered predicts that Bitcoin could reach $200,000 by late 2025 if exchange-traded funds (ETFs) are approved in the United States, based on an estimate of 437,000 to 1.32 million Bitcoin held in U.S.-listed spot Bitcoin ETFs by the end of 2024.
The bank views this potential milestone as a “watershed moment” for normalizing Bitcoin participation and aligns with its earlier prediction of Bitcoin hitting $100,000 by the end of 2024.

In a surprising turn of events, multinational bank Standard Chartered has thrown its hat into the Bitcoin prediction ring, forecasting a staggering $200,000 price tag for the leading cryptocurrency by the close of 2025. However, there’s a crucial condition attached to this ambitious forecast – the approval and success of Bitcoin exchange-traded funds (ETFs) in the United States.

Spot ETFs Could Propel Bitcoin to Unprecedented Heights

Standard Chartered’s projection hinges on the assumption that a substantial amount of Bitcoin, ranging between 437,000 and 1.32 million, will find a home in United States-listed spot Bitcoin ETFs by the end of 2024. This influx is expected to translate into a hefty $50-100 billion in inflows. For Bitcoin to hit the coveted $200,000 mark, it must surge 4.3 times from its current value of $47,000.

Comparing Bitcoin’s Potential with Gold ETPs

Notably, the bank draws parallels with the trajectory of gold exchange-traded products (ETPs). Standard Chartered’s executives, Kendrick and Cooper, argue that Bitcoin could experience similar gains as gold did seven to eight years after the launch of gold ETPs in November 2004. The executives anticipate these gains occurring over a more compressed timeframe of one to two years, attributing it to the swift development of the BTC ETF market.

Spot Bitcoin ETF Approval as a “Watershed Moment”

Kendrick and Cooper view the potential approval of spot Bitcoin ETFs in the U.S. as a “watershed moment” for mainstream Bitcoin participation. This sentiment aligns with the bank’s previous prediction of Bitcoin reaching $100,000 by the end of 2024.

Bitcoin’s Strengthened Network Fundamentals

While the focus remains on ETFs, industry expert Jamie Coutts of Pragmatic Blockchain Research emphasizes the importance of considering Bitcoin’s strengthened network “fundamentals.” According to Coutts, Bitcoin’s fundamentals are currently at an all-time high, citing a logarithmic “Bitcoin Network Activity” graph shared by blockchain analytics firm CryptoQuant.com.

Cautionary Perspectives Amidst the Hype

However, not everyone is convinced about Bitcoin’s sustained rally post-ETF approval. Bloomberg Intelligence’s senior macroeconomic strategist, Mike McGlone, expresses caution, warning against getting “overweight” in the current market euphoria.

McGlone points out that previous peaks have been accompanied by excessive hype, urging investors to tread carefully as the industry awaits the potential approval of Bitcoin ETFs.