Analysts Anticipate Over $1 Billion Inflows for Bitcoin ETFs in Q1, Potentially Surpassing $100 Billion in 2024
Market analysts from Standard Chartered, Galaxy, and Corestone are optimistic that the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) could result in more than $1 billion in inflows during the first quarter. Standard Chartered, aligning with its bullish outlook on bitcoin reaching $100,000 by year-end, foresees substantial investments if the SEC greenlights these products.
In a recent report, Standard Chartered projects potential inflows ranging from $50 billion to $100 billion throughout 2024 if asset managers succeed in launching spot bitcoin ETFs. This estimate implies the accumulation of 437,000 to 1.32 million new bitcoins within U.S. ETFs by the close of the year. Should these forecasts materialize, the report suggests that bitcoin’s value could approach $200,000 by the end of 2025.
Drawing parallels with the introduction of the first U.S.-based gold exchange-traded product in 2004, Standard Chartered notes that gold prices surged more than fourfold over seven years as gold ETP holdings matured. With bitcoin experiencing a 155% gain in the past year and a 6% increase since the start of 2024, the bank anticipates a quicker market development for BTC ETFs.
Corestone Capital’s Chairman and Founder, Will McDonough, concurs with this sentiment, predicting potential inflows of approximately $1 billion by the conclusion of Q1 2024. He emphasizes the removal of the self-custody barrier, allowing traditional brokerage accounts to provide exposure, which could attract a broader demographic of investors.
Galaxy Digital, in an October report, estimated that ETFs could draw a minimum of $14.4 billion in inflows within the initial years of issuance. Projections suggest a potential increase to $27 billion in the second year and $39 billion in the third year.
While Bitcoin ETFs remain in focus, several asset managers have submitted filings for spot ether ETFs, with the SEC expected to make a decision by May. Standard Chartered expresses confidence in the approval of ether ETFs, further diversifying investment opportunities in the evolving cryptocurrency landscape.
