Bitcoin, the largest cryptocurrency by market value, has been on a scintillating run since the start of 2023. And more upside could be on the way. Market observers believe the approval of multiple U.S.-listed spot bitcoin ETFs is imminent.
Some analysts and experts believe that event will be a “sell the news” proposition. Others see it as a potentially seminal event for the ETF industry and for the cryptocurrency world at large. As such, there could be tangible benefits for funds such as the Invesco Alerian Galaxy Crypto Economy ETF (SATO).
The ETF rallied alongside bitcoin last year. It more than doubled on an annual basis as the digital currency did the same. In other words, SATO is highly correlated to bitcoin’s price action. That’s obviously a positive when the cryptocurrency is rising as it has been to start 2024. Potentially bolstering the case for more SATO upside this year are expectations that bitcoin’s recent rally is still in its early innings.
Consider the Spot Bitcoin ETF Outlook
It’s possible that spot bitcoin ETFs are approved as soon as this week. With that in mind, some market observers are speculating about the possible longer-ranging effects on prices of the digital currency. Standard Chartered believes it’s possible a spot bitcoin could trigger a quadrupling in bitcoin prices.
“If ETF-related inflows materialize as we expect, we think an end-2025 level closer to USD 200,000 is possible. This assumes that between 437,000 and 1.32mn new bitcoins will be held in spot US ETFs by end-2024,” observed Standard Chartered Head of FX Research Geoff Kendrick.
From current levels, bitcoin would need to more than quadruple to get to $200,000. Assuming such a move materializes, SATO could potentially notch significant upside along the way.
