“Bitcoin will have an unprecedented year”: Stony Chambers

With 2025 approaching, there is “an unprecedented year ahead,” according to financial analysis company Stony Chambers Asset Research.

In a new report on the matter, he warns that Institutional bitcoin adoption in 2024 like never before signals extremely bullish outlook for 2025. This has been highlighted by the launch of BlackRock’s bitcoin exchange-traded fund (ETF), iShares Bitcoin Trust (IBIT).

IBIT has become the most successful ETF launch in history, reaching record levels of inflows. At the moment, in its first year, it accumulates more than 37 billion dollars (USD), thus being the largest bitcoin exchange-traded fund in the world.

“The rise of bitcoin-backed financial products, including ETFs and convertible bonds, is integrating BTC more deeply into global financial systems,” the report highlights.

BTC ETFs have surpassed gold ETFs in the amount of assets under management (AUM), for a sum of USD 129,000 million vs. USD 128,000 million. This can be seen below.

But something even more striking is that The AUM of the largest bitcoin ETF has surpassed that of the largest gold one by double. This is despite the fact that it has only been around for a year, unlike the other one that has been on the market for two decades, as the following graph shows.

The two companies with the highest performance in 2024 invested in bitcoin

In addition to the encouraging outlook for ETFs, Companies like Metaplanet, Kulr, and MicroStrategy saw phenomenal stock performance, fueled by their investment in BTC. The analyst highlights that this “indicates a growing corporate recognition of bitcoin as a reserve asset.”

Metaplanet (3350) and Kulr (KULR) stocks were the best performers globally in 2024, appreciating 2,600% and 2,400% respectively. Meanwhile, those of MicroStrategy (MSTR) were in the top 17 in the world, with a rise of 360%, above the 120% recorded by bitcoin.

In other words, 3 of the world’s 20 best-performing stocks in 2024 were companies that invested in bitcoin. “This trend underscores the growing recognition of Bitcoin as a viable reserve asset, with companies seeking to hedge against fiat currency depreciation and diversify their holdings,” notes Stony Chambers.

“The success of these companies may encourage broader corporate adoption of bitcoin, further integrating it into the global financial ecosystem,” the analysts add.

It is also highlighted that the bitcoin-backed bonds issued by MSTR are some of the best-performing securities in the world. These have been used by the company to buy BTC, an example that others are beginning to follow, says the specialist.

“These milestones reflect a significant shift in institutional sentiment toward bitcoin, and everything indicates that this is just the beginning,” exclaims Stony Chambers.

“Please understand what is happening. “Bitcoin is being pushed into several crevices of the global financial system that most people would not have conceived of just 2 years ago.”

Stony Chambers, financial analysis company.

Analysts point out that fixed income markets are now receiving a greater influx of capital and activity thanks to bitcoin. According to his vision, as this grows, BTC purchases will accelerate and the rate of new companies joining the market.

“The end result will be a permanent and growing flow insensitive to the price of BTC, which will cause the price to rise much more,” predicts the specialist. The fact that new bitcoin ETF proposals are also emerging is just one sign of the potential high demand.

New bitcoin-related ETFs expected to launch

“The emergence of new ETFs, such as Bitwise’s Bitcoin Standard Index, will drive capital inflows, further cementing bitcoin’s role in mainstream finance,” Chambers maintains. This index will compile the shares of companies with exposure to BTC.

We must also take into account the presentation of the ETF, Bitwise Bitcoin Standard Corporations, which proposes to invest in companies that own more than 1,000 BTC. “Once launched, this ETF will become a price-insensitive buyer of shares that hold BTC,” he clarifies.

For the analyst, this ETF or something like it will see massive inflows once it is launched, due to the success of companies with reserves in bitcoin and the unprecedented success of bitcoin spot ETFs. “The AUM will be another incentive for more companies to start buying BTC,” he said in his opinion.

With this panorama, “it is likely that we are witnessing the emergence of the S&P 500 of the Bitcoin Standard,” he predicts. It is a global stock index that includes the 500 important companies that operate with BTC.

“If 500 public companies tried to buy 1,000 BTC each, the absolute scarcity of BTC would push its price out of the reach of most companies to acquire 1,000 BTC,” he explains to put it in perspective.

Bitcoin would reach USD 175,000 this year, benefiting MSTR

In Stony Chambers’ view, the way to gain exposure to this seismic shift in global finance is to invest in MSTR. It considers that it is the best capitalized “investment bank” in bitcoin, given that MicroStrategy is the listed company with the most BTC in the world and continues to buy.

“MicroStrategy has become synonymous with corporate adoption of BTC, and its performance is closely linked to the price of BTC,” they clarify. However, he makes the caveat that there are great risks associated with his investment.

“Should BTC crash or MSTR face financial difficulties, whether due to mismanagement, regulatory scrutiny, or other operational issues, it could severely impact sentiment around bitcoin treasury strategies,” they mention. In addition, it is added that this could dissuade other companies or investors from entering the market.

The collapse of a high-profile bitcoin-focused company like MSTR could create a domino effect throughout the financial market, they detail. “It would call into question the viability of holding BTC on corporate balance sheets and reinforce the perception of BTC as a speculative asset rather than a good long-term reserve option,” they say.

However, consider that the risks are quite remote since MSTR is not as leveraged as many make it out to be. “They will not be exposed to margin calls or even solvency problems, even if BTC falls 50% from here,” the report states.

Regarding Donald Trump’s promises to integrate bitcoin into national reserves during his presidency, which begins on January 20, Stony Chambers recommends caution. He assumes that those who expect this will quickly be disappointed for some time. He doesn’t think it will happen in the short term.

Even if the Trump administration’s adoption does not happen, maintains its bitcoin price target of $175,000 this year. At the moment, its record price has been USD 108,000, set three weeks ago, in mid-December.

This perspective coincides with that of other specialists, already reported by NoticiasVE, who predict that the current bullish cycle will continue, although with the possibility that it will end at some point in the year.