The most recent financial institution to provide an opinion on the potential long-term effects of Spot Bitcoin ETFs on Bitcoin’s price is Standard Chartered Bank. By predicting that BTC might reach new heights by the end of 2025, the bank adopted an optimistic position.
Research from Standard Chartered was released on the X platform, which was originally Twitter, stating that the price of Bitcoin might reach $200,000 by the end of 2025. According to the bank’s Head of Digital Assets Research, Geoff Kendrick, and Precious Metal Analyst Suki Cooper, there is a chance that Bitcoin might reach this price point if $50 to $100 billion flows into the Spot Bitcoin ETFs.
Their estimates are based on the notion that these Spot Bitcoin ETFs might be approved this week at the latest. Following the success of gold exchange-traded funds (ETFs), Kendrick and Cooper predict that this will be a major factor propelling Bitcoin’s price upwards. The interesting thing is that Standard Chartered thinks Bitcoin might reach $100,000 before the year ends.
The bank anticipates that Bitcoin will experience growth on par with that of Gold (following the approval of Gold ETPs), but it will happen more quickly for the leading cryptocurrency. They reasoned that the market for spot Bitcoin ETFs would grow at a faster rate than that of gold ETPs.
It is still debatable how much capital these Spot Bitcoin ETFs may get. In a more cautious assessment, crypto research firm Galaxy Digital predicts that these funds will receive just approximately $14 billion in their first year of operation. On the other hand, VanEck’s adviser, Gabor Gurbacs, is just considering the far future.
When asked about Standard Chartered’s research, Gurbacs said that, personally, he is more interested in the potential future infusion of capital into these funds than in their current valuation. This is why, in the long run, he believes, spot Bitcoin ETFs would attract billions of dollars. More specifically, he argues that these Bitcoin holdings should reach $2.5 trillion.
He went on to say that this is quite possible given the world’s estimated $500 trillion in assets. So, the introduction of $2.5 trillion, which is less than 0.5 percent of the total allotment, into the Bitcoin ecosystem shouldn’t pose any issues. The idea that Bitcoin’s value would rise indefinitely despite the continued devaluation of fiat currencies is another premise around which he builds his forecast. Essentially, he argues that the fact that fiat currency has no bottom means that Bitcoin has no top.
After the approval of these Spot Bitcoin ETFs, Gurbacs believes that Bitcoin will gain greater acceptability. He predicts that financial institutions, regulators, and banks will shift their positions from “enemies of Bitcoin to allies of Bitcoin.” His comment was that this is “immeasurably valuable” since it can equalize the uptake of Bitcoin.
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