In a bold projection, experts from Standard Chartered, Galaxy, and Corestone envision a surge of over $1 billion into a spot bitcoin ETF within the first quarter, with the potential to soar beyond $100 billion by the year’s end.
As the market eagerly awaits the U.S. Securities and Exchange Commission’s decision on spot exchange-traded fund filings, industry analysts are optimistic about substantial inflows into bitcoin ETFs. Standard Chartered Bank, known for its bullish forecast of bitcoin reaching $100,000 by the end of the year, foresees a tidal wave of investments into approved products.
According to the bank’s report, a favorable SEC decision could lead to inflows ranging from $50 billion to a staggering $100 billion in 2024. This influx might result in holding between 437,000 and 1.32 million new bitcoins within U.S. ETFs by the close of 2024. Remarkably, if these predictions materialize, bitcoin could potentially surge to levels approaching $200,000 by the end of 2025.
Drawing a parallel with the historic launch of the first U.S.-based gold exchange-traded product in 2004, Standard Chartered suggests that the bitcoin ETF market might evolve even more rapidly. In a span of one to two years, similar gains to gold could be witnessed, with bitcoin overcoming hurdles at a faster pace.
Will McDonough, Chairman and Founder of Corestone Capital, shares this optimism, predicting a robust demand for a bitcoin ETF. McDonough anticipates an impressive $1 billion in inflows by the close of the first quarter, emphasizing how overcoming obstacles like self-custody will open doors to a broader investor demographic.
Galaxy Digital, in an October report, estimated that ETFs could attract a minimum of $14.4 billion in the first year, with potential inflows escalating to $27 billion in the second year and an impressive $39 billion by the third year.
Excitingly, this anticipation extends beyond bitcoin, with a growing number of asset managers seeking approval for spot ether ETFs. Standard Chartered confidently predicts the SEC’s approval of ether ETFs, adding another layer of potential growth to the expanding cryptocurrency market.
In a landscape defined by innovation and opportunity, the stage is set for a transformative year in the world of cryptocurrency ETFs. Investors, brace yourselves for a potential financial evolution with Bitcoin and Ethereum ETFs leading the charge into a new era of digital asset investment.