According to a report from The Block, analysts at Standard Chartered Bank believe that the market widely expects the U.S. Securities and Exchange Commission (SEC) to approve Bitcoin spot ETFs this week, which could attract inflows of up to $500 billion to $1 trillion this year.
Standard Chartered Bank compared Bitcoin spot ETFs to gold ETFs, noting that these funds have fundamentally changed the way investors enter the gold market. Specifically, the bank used the SPDR Gold Shares (GLD), the first gold ETF in the U.S., as a point of comparison. GLD was launched in 2004 and is currently the world’s largest physically backed gold ETF.
The analyst team at Standard Chartered Bank, led by Geoffrey Kendrick, wrote in a report on Monday, the 8th:
“This figure is Standard Chartered Bank’s estimated inflow amount, close to a low point. In the ‘high’ scenario, the bank expects inflows of up to $130 billion, while inflows of $500 billion to $1 trillion by 2024 ‘look reasonable’.”
Several Bitcoin spot ETF applicants also estimate inflows of billions of dollars into the market. For example, asset management company VanEck expects inflows of $1 billion in the first few days and $2.4 billion within a quarter. Digital asset investment firm Galaxy estimates inflows of $14 billion in the first year. Cryptocurrency index and fund provider Bitwise expects the market to reach about $72 billion within five years.
Related reports: “Galaxy report: Bitcoin spot ETF’s first-year inflows could reach $14.4 billion, driving prices up 74%.” “Bitcoin could reach $200,000 by the end of 2025.”
Standard Chartered Bank sees the potential approval of Bitcoin spot ETFs as a “watershed moment” for institutional investors’ participation in Bitcoin, and expects the price of Bitcoin to rise significantly by the end of 2025. The bank points out that in the seven to eight years after the launch of GLD, the price of gold rose 4.3 times, demonstrating the market performance of mature gold ETP holdings.
Standard Chartered Bank analysts previously predicted in mid-2023 that Bitcoin would reach $50,000 that year, although Bitcoin’s subsequent performance met the bank’s bullish expectations, there is still a discrepancy of nearly 10% from last year’s highest price (around $44,800). In addition, the bank also predicted that Ether (ETH) was expected to reach $8,000 by the end of 2026.
Ether spot ETFs may be launched in the second quarter
Several companies have also applied for Ether spot ETFs, and Standard Chartered Bank expects these ETFs to be approved in the second quarter of this year.
Standard Chartered Bank states that the SEC’s view on Ether ETFs will be different from that of Bitcoin ETFs, as SEC Chairman Gary Gensler has previously stated that currencies other than Bitcoin may be considered securities. However, it is worth noting that Ether was not among the 67 currencies and tokens claimed to be securities when the SEC filed lawsuits against several exchanges, so it is “ultimately likely to approve Ether spot ETFs”.
Related report: “Bloomberg analyst claims that the US SEC has recognized Ether as a commodity and believes that Ether spot ETFs may be approved.”
Risk Warning: This content is for informational reference only and does not represent the stance or investment advice of this website. Readers must conduct their own careful evaluation.
Successful Conclusion of CoinEx Taiwan’s 7th Anniversary Celebration, Embracing the Arrival of the Web3 Era Hand in Hand with Users
Since its establishment in 2017, CoinEx has been a professional cryptocurrency trading pla…