Standard Chartered predicts $200,000 BTC by the end of 2025

British Universal Bank Standard Chartered projects that Bitcoin (BTC) will reach $200,000 by the end of 2025 – up more than 300% from where it is trading today.

The bank argued in a research note on Monday that Bitcoin spot ETFs – which are expected to receive approval “soon” – could absorb $50 billion to $100 billion worth of flows in a year.

The leverage of Bitcoin ETFs

The bank based its earnings estimates on the performance of the first gold ETF to hit the US market in November 2004.

The precious metal is frequently compared to Bitcoin in financial circles as a rare form of currency and a reliable store of value. Like gold ETFs, bitcoin equivalents allow investors to easily access the known value of an asset without the complexity of storing the asset themselves.

The bank's analysts, including Geoff Kendrick, head of digital asset research, and precious metals analyst Suki Cooper, said: “In the seven to eight years it took gold ETP holdings to mature, the price of gold increased by 4.3x.”

The authors expect the Bitcoin ETF to generate similar returns, but in the shorter term of one to two years, as the Bitcoin ETF market is expected to “grow rapidly.”

According to the bank, such revenues could push Bitcoin's price to a “end-2025 level close to $200,000.”

“This estimates that between 437,000 and 1.37 million new Bitcoins will be held in US ETFs by the end of 2024,” the analysts continued. “It should be about $50-100 billion in US dollars.

Counting to Bitcoin ETFs

Last month, Standard Chartered predicted that BTC would reach $100,000 by the end of 2024, with both ETF approvals and the upcoming Bitcoin halving.

About a dozen asset managers, including BlackRock, Fidelity and Arch Invest, are awaiting SEC approval of their ETF applications this week. The agency's final deadline to approve or deny the Arch application is Wednesday.

Almost all sponsors have disclosed lower management fees unique to their products, indicating that some of their sponsors may have large AUM expectations to maintain lower fees.

As ETF excitement grew, bitcoin hit another multi-year high of $47,100 on Monday.