TL;DR
- Bitcoin ETFs are predicted to become a popular choice for US pension plans, with traditional financial players like BlackRock and Franklin Templeton entering the cryptocurrency market through these funds.
- Over $4 billion has already flowed into the eleven-spot Bitcoin ETFs approved by the SEC, and Geoff Kendrick of Standard Chartered expects a transformation in the US 401K market as retirement fund managers invest in these ETFs.
- Kendrick estimates a total net inflow of around $50 billion to $100 billion into spot Bitcoin ETFs in 2024, potentially pushing the BTC price to a high of $200,000 in 2025.
Bitcoin ETFs (Exchange-Traded Funds) are set to become a popular choice for US pension plans, according to analysts at Standard Chartered. They foresee a significant increase in investments into these funds, suggesting a wider acceptance and incorporation of Bitcoin-related investments in retirement portfolios.
Geoff Kendrick, the Head of Crypto Research at Standard Chartered, provided an overview of this changing scenario. He highlighted the involvement of traditional financial players like BlackRock and Franklin Templeton in the cryptocurrency market through the newly introduced spot Bitcoin ETFs.
These ETFs are financial instruments that many investors believe will facilitate the entry of mainstream capital into the crypto market. At present, the signs are promising.
Fund managers have directed over $4 billion in net inflows to the eleven spot Bitcoin ETFs that received approval from the US Securities and Exchange Commission (SEC) on January 11. Kendrick expects a transformation in the US 401K market, with retirement fund managers likely to invest in these newly introduced ETFs.
How Much Money Could Flow into Bitcoin ETFs in 2024?
Furthermore, Kendrick estimates a total net inflow of around $50 billion to $100 billion into spot Bitcoin ETFs in 2024. In terms of Ether, he predicts the SEC will approve spot Ether ETFs in May, leading to a net inflow of about $20 billion to $35 billion into spot Ether ETFs throughout 2024.
Standard Chartered has expressed optimism about the future of the primary cryptocurrency. The bank believes that the approval of the 11 Bitcoin ETFs could stimulate inflows of $50 to $100 billion in 2024, potentially pushing the BTC price to a high of $200,000 in 2025.
The bank forecasts that if the asset managers who have applied to issue spot Bitcoin ETFs succeed, there could be inflows of $50 billion to $100 billion this year. This would mean that between 437,000 and 1.32 million new Bitcoins could be held in U.S. ETFs by the end of 2024.
The move towards Bitcoin ETFs by US pension plans marks a significant step in the integration of cryptocurrencies into conventional finance. It emphasizes the increasing acknowledgment of digital assets as a legitimate investment choice for retirement portfolios.
