Standard Chartered’s Jeff Kendrick sees potential for pensions to enter the market with the recent approval of spot Bitcoin ETFs. Kendrick is optimistic about the approval of a spot Ethereum ETF in May and its impact on the cryptocurrency market. Experts believe that the recent approval of Bitcoin spot ETFs will make cryptocurrency investing more accessible to retirees.
Jeff Kendrick, head of cryptocurrency research at Standard Chartered, is optimistic about pension fund interest following the recent SEC approval of spot Bitcoin exchange-traded funds (ETFs).
Kendrick is bullish on Ethereum, suggesting it will likely follow a similar path to Bitcoin in the approval process for its own ETF.
Standard Chartered Bullish on BTC and ETH 401k Plans
During an interview with Yahoo Finance Future Focus, Standard Chartered’s Jeff Kendrick explained that Bitcoin and Ethereum, the two largest cryptocurrencies by market cap, are performing well. Furthermore, he hints that investor confidence has increased despite recent declines in inflation:
“Actually, Bitcoin and Ethereum and risk assets in general have held up very, very well. And I think that is because we are now in a situation where we know that the cuts are coming because inflation is going down, most importantly.”
Meanwhile, during a recent press conference, Federal Reserve Chairman Jerome Powell pointed to the persistence of high utility prices as a cause for concern.
According to PBS News Hour, he indicated that central bank policymakers would prefer to see further easing of services inflation before considering a reduction in their base interest rate.
However, Kendrick pointed to the possibility of an influx of pensioner funds flocking to Bitcoin ETFs. This could give the cryptocurrency a big boost. Statista data for the second quarter of 2021 revealed that the value of assets in 401k retirement plans in the United States had reached $7.26 trillion.
Kendrick was also optimistic about the approval of the Ethereum spot ETF in May:
“And what we are going to see now in the US is that the 401(k) market, that is, pensions, etc., enter Bitcoin and other assets in this space when we have the Ethereum market in May for the first time as well.”
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 that the SEC will approve spot Ether ETFs in May, leading to an inflow net around $20 billion to $35 billion in Ether spot ETFs throughout 2024.
Standard Chartered Optimistic on Ethereum ETF Approval in May
Standard Chartered has expressed optimism about the future of the leading cryptocurrency. The bank believes that the approval of the 11 Bitcoin ETFs could stimulate inflows of between $50,000 and $100,000 million in 2024, which could take the price of BTC to a high of $200,000 in 2025.
The bank predicts that if asset managers who have applied to issue spot Bitcoin ETFs are successful, there could be inflows of between $50 billion and $100 billion this year. This would mean that between 437,000 and 1.32 million new Bitcoins could be held in US ETFs by the end of 2024.
The move toward Bitcoin ETFs by US pension plans marks a significant step in the integration of cryptocurrencies into mainstream finance. It emphasizes the growing recognition of digital assets as a legitimate investment option for retirement portfolios.
By Leonardo Perez
