DIGIVESTASI - In a bold prediction, British banking giant Standard Chartered predicts that the price of Bitcoin (BTC) will reach $200,000 by the end of 2025, representing a staggering increase of 300% from its current trading value. 

The bank's optimism rests on the possible outright approval of a Bitcoin ETF, which is said to attract significant capital inflows of $50 billion to $100 billion in just one year. 

BTC price factor 
Based on a report by Crypto Potato, a research note from Standard Chartered, published earlier this week (August 1, 2024), highlights the important role that Bitcoin ETFs are expected to play in the electronic money market. 

Similar to the introduction of the first gold ETF to the US market in November 2004, the bank predicts that a Bitcoin ETF could lead to a significant rise in the price of this cryptocurrency.

The comparison to gold is apt, as both assets are often considered a form of rare money and a reliable store of value. 

Citing historical data, the bank's analysts, led by Geoff Kendrick, head of digital assets research, and Suki Cooper, precious metals analyst, noted that gold prices have increased 4.3 times in 7 to 8 years as gold ETF holdings have matured.

They predict a similar growth rate for Bitcoin, but over a shorter period of time, between one and two years, due to the expected rapid growth of the Bitcoin ETF market. 

Analysts explain that Bitcoin ETFs will provide investors with easy and familiar access to cryptocurrency prices without the complications associated with asset storage.

Compared to the historical performance of gold ETFs, they point out that initial inflows could lead to Bitcoin reaching a price of $200,000 by the end of 2025.  

"This assumes that between 437,000 and 1.37 million new Bitcoins will be deposited in US ETFs by the end of 2024... In USD terms, this amounts to around $50 billion to $100 billion," said the research from the bank's analysts. 
Last month, Standard Chartered set an ambitious target, predicting that Bitcoin will reach $100,000 by the end of 2024. This forecast was attributed to the combined impact of the ETF approval and the upcoming Bitcoin halving, highlighting the various factors affecting the Bitcoin electronic money market. 

The upcoming US Securities and Exchange Commission (SEC) decision regarding the ETF applications of nearly 11 asset managers, including industry giants such as BlackRock, Fidelity, and Ark Invest, is highly anticipated.