Bitcoin (BTC) is positioned to achieve a new record high, driven primarily by substantial investment flows, according to insights from Standard Chartered (STAN). Recent data indicates that over the past three weeks, U.S. spot bitcoin exchange-traded funds (ETFs) have garnered an impressive $5.3 billion in inflows. This surge highlights the growing institutional interest in the cryptocurrency market.
After adjusting for hedge fund basis trades, which exploit discrepancies between the spot and futures market prices of bitcoin, the net real flow is estimated to exceed $4 billion. This denotes a significant influx of capital, showcasing the appetite for bitcoin as an investment asset.
In addition, MicroStrategy (MSTR), a notable player in the market, has escalated its bitcoin holdings to 555,450 BTC, constituting approximately 2.6% of the total fixed supply capped at 21 million BTC. The company’s ambitious plan to raise $84 billion for further acquisitions could potentially boost its total holdings to over 6%. Geoff Kendrick, head of digital assets research at Standard Chartered, emphasizes how this expansion could influence market dynamics.
Looking ahead, the upcoming 13F filings are anticipated to reveal further institutional adoption, as major entities continue to establish positions in the bitcoin market. Recently, Abu Dhabi’s sovereign fund disclosed its stake in BlackRock’s bitcoin ETF (IBIT), suggesting a trend of growing acceptance among both sovereign and institutional investors. Similarly, the Swiss National Bank and Norges Bank have also revealed their holdings in MicroStrategy, reinforcing the notion of widespread institutional involvement.
On the regulatory front, New Hampshire has made headlines by passing a Strategic Bitcoin Reserve bill, becoming the first U.S. state to formally adopt such a measure. This legislative move signifies a shift toward a broader acceptance of cryptocurrency regulations, aligning state policies with the growing interest in digital assets.
Given these developments, Standard Chartered suggests that their second-quarter price target of $120,000 for bitcoin may be conservatively low. The investment bank has set a year-end price target for bitcoin at an ambitious $200,000. As of the latest market data, the price of bitcoin hovers around $101,000, highlighting its robust potential for further growth.
For more insights: Bitcoin to Hit New All-Time High Around $120K in Q2, Standard Chartered Says
