According to a report from Standard Chartered Bank, which was quoted by The Block and watcher.guru, the bank has raised its price target for Bitcoin. Previously, it had estimated that the price of Bitcoin would surge to $100,000, but it has now increased the price ceiling.
The report compares the expected launch of a Bitcoin spot ETF by Standard Chartered Bank with the launch of the first gold ETF in the US, SPDR Gold Shares (GLD), in 2004. GLD is currently the largest physical gold ETF in the world.
Geoffrey Kendrick, an analyst, explains that when GLD was launched, the global gold market was valued at around $2.2 trillion, while the current market value of Bitcoin is $860 billion. Based on the subsequent inflow of $88 billion into GLD, this would represent an inflow of $34 billion into a Bitcoin ETF.
The report also estimates that between $50 billion and $100 billion will flow into the Bitcoin ETF. From an “overvalued” perspective, the bank’s analysts believe that inflows in 2024 could reach $130 billion, which seems “reasonable” within the range of $50 billion to $100 billion.
Standard Chartered Bank also considers the approval of a Bitcoin spot ETF as a watershed moment for institutional investors and predicts that the price of Bitcoin could reach $200,000 by the end of 2025. The bank expects a similar magnitude of increase in Bitcoin as seen in gold prices after the introduction of GLD. Given the continuous development of the Bitcoin ETF market, the bank believes this increase could be achieved in a shorter period of time (one to two years). Assuming that there are 437,000 to 1.32 million BTC held in the form of a spot ETF, this would align with the expected inflow of $50 billion to $100 billion.