Standard Chartered Expects Ethereum to Outperform Bitcoin After ETF Approval
Standard Chartered, a British multinational bank, has expressed its bullish outlook on both Ethereum (ETH) and Bitcoin (BTC). The bank predicts that Ethereum will outperform Bitcoin once spot ETFs for ETH are approved by regulators in May of this year. In addition, Standard Chartered has revised its Bitcoin price prediction from $150,000 to $250,000 by 2025. The bank also expects Ethereum to reach $14,000 per unit, following significant inflows of up to $45 billion in ETFs within the next 12 months.
Standard Chartered Predicts ETH Price of $14,000
In a recent research note, Standard Chartered analyst Geoff Kendrick estimated that the approval of spot ETFs would drive inflows of 2.39-9.15 million ETH within the first year. This would equate to approximately $15 billion to $45 billion in USD terms. Kendrick also noted that this figure aligns with his expectations for Bitcoin spot ETFs in market cap-adjusted terms. Despite non-stop outflows from the Grayscale Bitcoin Trust (GBTC), net inflows to U.S. Bitcoin spot ETFs have already surpassed $11.9 billion since their launch on January 11.
Standard Chartered highlighted the potential correlation between Bitcoin and gold, pointing out that the market cap of gold is $14 trillion while the market cap of Bitcoin is $1.4 trillion. This leaves a gap of $12.6 trillion, indicating that if Bitcoin were to reach a value of $680,000, it would equal the market cap of gold.
Revised Bitcoin Price Prediction
Based on the current pace and market trends, Standard Chartered has revised its end-of-2024 Bitcoin price prediction from $100,000 to $150,000. The bank also introduced a new midpoint of $200,000 for a sideways trading range by the end of 2025. This revised price aligns with a scenario where Bitcoin represents 20% of investors’ allocation to gold within their portfolios.
Ethereum’s Potential to Outpace Bitcoin
Standard Chartered expects Ethereum to keep pace with or even outperform Bitcoin over the next two years. Currently, Ethereum has a price ratio of 5.4% against Bitcoin in 2024. The bank predicts that this ratio will increase to 7% in 2025, which is the same ratio observed in 2021 and 2022. Based on these projections, Standard Chartered estimates that the price of ETH will reach $8,000 by the end of 2024 and $14,000 by 2025.
Approval of Ethereum ETF
While Standard Chartered is optimistic about the approval of an Ethereum ETF by May, other analysts are less confident due to the lack of communication from regulators on the matter. Bloomberg ETF analyst Eric Balchunas recently lowered the odds of ETH ETF approval by the May deadline to 35%. He stated that the signs and sources that were previously bullish for Bitcoin spot ETFs are not present this time.
Hot Take: Standard Chartered Bullish on ETH and BTC
Standard Chartered’s bullish outlook on both Ethereum and Bitcoin reflects its belief in the potential growth and adoption of these cryptocurrencies. The bank expects Ethereum to outperform Bitcoin once spot ETFs for ETH are approved, leading to significant inflows into the market. Additionally, Standard Chartered has revised its Bitcoin price prediction upward, indicating its confidence in the long-term prospects of the leading cryptocurrency. However, the approval of an Ethereum ETF remains uncertain, and analysts have expressed doubts about its likelihood. Overall, Standard Chartered’s positive stance on ETH and BTC demonstrates its confidence in the future of digital assets.
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