Potential $100B Inflow into Bitcoin ETFs Pending SEC Approval: Standard Chartered

• Market Anticipation for Bitcoin ETFs
• Standard Chartered Bank Predictions
• Price Projections
• Performance and Projections
• Industry Agreeance on Bitcoin ETF Demand
• Galaxy Digital Report

Market Anticipation for Bitcoin ETFs

The cryptocurrency market is keenly awaiting a verdict from the U.S. Securities and Exchange Commission (SEC) concerning filings for spot exchange-traded funds (ETFs). Market analysts have projected that bitcoin ETFs could amass over $1 billion in inflows within the coming three months and potentially exceed $100 billion by year's end.

Standard Chartered Bank Predictions

Standard Chartered Bank, having previously forecasted bitcoin to reach $100,000 by the conclusion of this year, expects significant inflows into these funds if they receive approval from the SEC. The bank anticipates inflows between $50 billion to $100 billion this year in the event of a victory for asset managers who have applied for spot bitcoin ETFs approval. This implies that between 437,000 and 1.32 million new bitcoins could be held in U.S. ETFs by the end of 2024.

Price Projections

Should the expected inflows materialise, bitcoin could potentially hit figures close to $200,000 by the end of 2025, according to Standard Chartered. The bank drew comparisons between the potential bitcoin ETF and the initial U.S.-based gold exchange-traded product launched in November 2004, which saw the price of gold surge over 4x in the seven years it took for gold ETP holdings to mature.

Performance and Projections

Bitcoin$42,260 -0.64% has witnessed a gain of approximately 155% in the past year and has risen by 6% since the onset of 2024, based on data from Messari. Standard Chartered suggested that following approval, bitcoin could experience comparable gains to gold, but within a significantly shorter time frame, of one to two years. Our view is the BTC ETF market will develop more quickly, the report stated.

Industry Agreeance on Bitcoin ETF Demand

Will McDonough, chairman, and founder of Corestone Capital, also anticipates substantial demand for a bitcoin ETF if approved. McDonough estimates that by the end of the first quarter of this year, there could be approximately $1 billion worth of inflows. McDonough commented on the potential of the expected approval to increase the demographic of investors who can allocate even just 1% of their portfolio to this growing alternative asset class.

Galaxy Digital Report

In an October report, Galaxy Digital projected that ETFs would attract at least $14.4 billion of inflows in the initial years of issuance. The report suggested a potential increase in inflows by $27 billion in the second year and $39 billion in the third year. A multitude of asset managers have also filed for spot ether ETFs with a final decision expected in May. Standard Chartered Bank stated in its report that it anticipates the SEC to approve ether ETFs.

Edited by Jonathan Stoker