Standard Chartered Predicts Bitcoin to Reach $200,000 by 2025, Thanks to ETFs

Standard Chartered derived its price prediction from the premise that, by the conclusion of 2024, there will be between 437,000 and 1.32 million Bitcoins held in spot Bitcoin ETFs listed in the United States. The bank estimates that this scenario would lead to an influx of funds ranging between $50-100 billion.

Global bank, Standard Chartered, anticipates that the price of Bitcoin (BTC) could approach nearly $200,000 by the end of 2025, thanks to the approval and success of Bitcoin exchange-traded funds (ETFs) in the United States.

Standard Chartered derived its price prediction from the premise that, by the conclusion of 2024, there will be between 437,000 and 1.32 million Bitcoins held in spot Bitcoin ETFs listed in the United States. The bank estimates that this scenario would lead to an influx of funds ranging between $50-100 billion.

“If ETF-related inflows materalize as we expect, we think an end-2025 level closer to USD 200,000 is possible,” said Standard Chartered Head of Digital Assets, Geoff Kendrick, and precious metals analyst, Suki Cooper, in a January 8 2024 report.

For the $200,000 prediction to materialize, Bitcoin would need to surge approximately 4.3 times from its current price of $47,000.

The executives at Standard Chartered highlighted that the 4.3 multiplier employed for the Bitcoin prediction aligns with the historical performance of gold exchange-traded products. Specifically, they noted that the value of gold ETPs multiplied by this factor around seven to eight years after their launch in November 2004.

“We expect Bitcoin to enjoy price gains of a similar magnitude as a result of U.S. spot ETF approval, but we see these gains materalising over a shorter (one to two-year) period, given our view that the BTC ETF market will develop more quickly.”

Kendrick and Cooper said that the approval of spot Bitcoin ETFs which finally took place on January 10 2024 is a ‘watershed moment’ in normalizing Bitcoin participation. Additionally, they emphasized that their recent Bitcoin price forecast of nearly $200,000 aligns with their earlier prediction of $100,000 for the end of 2024.

The team also noted that the next Bitcoin ‘halving,’  a mechanism to limit supply expected to take place in late April 2024 will be another source of price upside.