Institutional flows into Bitcoin (BTC-USD) are expected to continue in 2025, which would make the cryptocurrency reach $200,000 by the end of next year, said Geoff Kendrick, head of Crypto Research at Standard Chartered Bank, in a note.
Institutions have net bought 683,000 bitcoin year-to-date through U.S. spot ETFs and through large purchases by MicroStrategy (MSTR), which is ahead of its $42B three-year plan, and is totaling 213,000 bitcoin buys year-to-date.
Net inflows by ETFs have reached 470,000 as of Dec. 4.
About 245,000 purchases have been made since the U.S. presidential election, and Standard Chartered Bank analysts believe the expected regulatory changes from the Trump administration will make it easier for traditional finance to participate in digital assets.
“We think our end-2025 Bitcoin (BTC-USD) price target around the $200,000 level is achievable,” wrote Kendrick. “We would turn even more bullish if Bitcoin saw more rapid uptake by U.S. retirement funds, global sovereign wealth funds, or a potential U.S. strategic reserve fund.”
Aside from regulatory changes, options on BlackRock’s IBIT ETF (IBIT), which launched on Nov. 19 with $1.9B of notional trading on day one, is supportive of institutional flows and will be a driver in 2025, Kendrick said.
“The Bitcoin options market is currently dominated by Deribit (a futures and options trading platform for cryptocurrencies based in Amsterdam), creating counterparty risk issues for [traditional finance] players,” he said. “Increased competition in this space is helpful. It should also help to keep pushing Bitcoin (BTC-USD) volatility lower, which means the potential for higher portfolio allocations from [traditional finance].
