Standard Chartered, a global financial powerhouse, anticipates that Bitcoin (BTC) could surge to $200,000 by the conclusion of 2025 contingent upon the approval of a Bitcoin ETF (Exchange Traded Fund) by the US Securities and Exchange Commission (SEC). Geoff Kendrick, the head of digital assets at Standard Chartered, and Suki Cooper, a precious metals analyst, assert that if the anticipated ETF-related capital inflows materialize, reaching a year-end target near $200,000 is conceivable.
The bank projects that US-listed spot BTC ETFs might secure a holding of 437,000 to 1.32 million Bitcoins by the close of this year, with estimated inflows ranging between $50-100 billion.
Achieving the $200,000 milestone from current levels would signify a remarkable 4.3X growth, equivalent to a surge of approximately 327%. Nonetheless, analysts caution that gold Exchange Traded Products (ETPs) took seven to eight years to undergo a similar 4.3X growth. They anticipate Bitcoin to undergo comparable price appreciation upon the approval of a US spot ETF, but with gains materializing over a shorter period of one to two years, given their expectation of more rapid development of the BTC ETF market.
As per Bloomberg, there is a 95% likelihood that the SEC will greenlight one or more spot BTC ETFs. Analysts also speculate that the SEC might announce its approval decision as early as this week, with CNBC analysts suggesting a potential unveiling by Wednesday, January 10, 2023.
The potential approval of a spot Bitcoin ETF holds the prospect of triggering a significant uptick in BTC’s price. Furthermore, it could usher in a bull run reminiscent of the market dynamics observed in 2021 following regulatory approval.
