BTC ETF Decision Looms: Market Reacts as Standard Chartered Forecasts $200K Bitcoin by 2025
Summary:
As the impending decision on Bitcoin (BTC) exchange-traded funds (ETFs) looms, crypto businesses, investors, and regulators prepare for potential outcomes. Bitcoin short investment products see over $1 million weekly outflows and the Crypto Fear and Greed Index enters the "extreme greed" zone. Moreover, Standard Chartered forecasts Bitcoin could hit $200,000 by 2025 if BTC ETFs get approved. While several asset management companies have filed form amendments for spot BTC ETF approval, crypto company Hashdex did not. Lastly, SEC Chair Gary Gensler cautions crypto investors as decisions on many BTC ETF applications await.
As we approach the verdict on Bitcoin (BTC) exchange-traded funds (ETFs), prospective crypto companies, investors, and regulators are gearing up to handle the uncertain future. Bitcoin short investment products have seen more than $1 million in total weekly outflows, whilst the Crypto Fear and Greed Index has edged into the "extreme greed" zone. Additionally, Standard Chartered has suggested that the price of Bitcoin could reach $200,000 by 2025, providing the spot BTC ETF is approved.
Short ETPs of Bitcoin have recorded a weekly outflow of $1M in light of the prospective approval of the BTC ETF. Despite a $151 million influx into digital asset investment products, or exchange-traded products (ETPs) in the initial week of 2024, more than $1 million of Bitcoin short positions were withdrawn.
Contrary to earlier predictions implying that the prospective BTC ETF approval could lead to a "buy the rumor, sell the news" scenario, recent digital asset investment flow data suggests significant withdrawals over past weeks.
The Crypto Fear and Greed Index indicates a sentiment of "extreme greed" amongst crypto investors. According to this index, Bitcoin sentiment score stands a high 76 out of a possible 100 - the peak score since Bitcoin's highest price of $69,000 in mid-November 2021. The index last hit this high on November 11th, 2021, coinciding with the peak price of Bitcoin.
Multinational bank Standard Chartered predicts Bitcoin could reach nearly $200,000 by the end of 2025, assuming BTC ETFs gain approval and maintain success as investment products. Standard Chartered estimates that between 437,000 and 1.32 million BTC will be held in US list spot Bitcoin ETFs by the conclusion of 2024, correlating to between $50-100 billion in inflows.
While various asset managers amended their S-1 form submissions on January 8th as part of the share listing approval process for a spot BTC ETF fund on US exchanges, crypto asset management firm Hashdex did not. Hashdex's application to the SEC in August proposed a futures investment vehicle that could also hold spot Bitcoin, differing from other firms.
Ahead of the decision on spot Bitcoin ETF approval, SEC Chair Gary Gensler has issued a warning to crypto investors. Despite the uncertainty around potential simultaneous approval of numerous BTC ETFs, applications from many asset managers such as Valkyrie, WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, ARK Invest, 21Shares, Fidelity, Bitwise and Franklin Templeton are in. However, although January 8th S-1 submissions were expected - following many 19b-4 submissions on January 5th - these actions signify progress towards crypto ETF listings on US exchanges, but do not necessarily promise approval.
Published At
1/9/2024 5:00:00 PM
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