Standard Chartered’s international head of digital belongings analysis, Geoffrey Kendrick, has reaffirmed his standout value forecast for Bitcoin. Kendrick, who envisions BTC hitting $500,000 by 2028, bases his conviction on proof of accelerating institutional involvement — particularly pointing to sovereign wealth funds, state pension funds, and different large-scale buyers.
Sovereign Wealth Funds Enter The Bitcoin Fray
According to a brand new report from Standard Chartered cited by The Block, Kendrick sees rising indicators that government-backed funding autos are ramping up their curiosity in Bitcoin. This view is bolstered by Abu Dhabi’s latest disclosure of a 4,700 BTC-equivalent place in BlackRock’s iShares Bitcoin Trust (IBIT) by way of its sovereign wealth fund.
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“While this is small for now, we would expect the size to increase over time and, indeed, for other sovereigns to also start buying,” Kendrick wrote within the Tuesday report. He defined that Abu Dhabi’s transfer marks a strategic shift and will presage broader participation from different wealth funds seeking to diversify their portfolios with BTC.
Kendrick’s confidence is partly rooted in Form 13F filings — quarterly stories that institutional managers overseeing at the least $100 million in belongings are required to file with the US Securities and Exchange Commission. Reviewing knowledge from the fourth quarter of 2024, Kendrick famous a compelling development.
“The 13F filings for Q4 show that process is underway…It is happening,” he stated in an e-mail to The Block. In Standard Chartered’s evaluation, This autumn knowledge revealed that whereas hedge funds maintained their lead in Bitcoin purchases, banks — which started shopping for in Q3 of final 12 months — additionally ramped up their positions.
Kendrick drew parallels between an earlier stage in Bitcoin’s market evolution, dominated by retail buyers, and the more moderen period, which noticed hedge funds bounce aboard by means of exchange-traded funds (ETFs). Now, the highlight seems to be broadening additional to incorporate state funding managers and central banks.
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“This gives us comfort to say that even if buying by Strategy… [formerly MicroStrategy] slows down dramatically (it has bought a staggering 227k BTC since the US election, more than 1% of the ever-to-exist supply), we think other buyers are waiting to step in,” Kendrick famous.
The point out of MicroStrategy underscores simply how vital one personal firm’s bitcoin holdings could be. Yet Standard Chartered’s evaluation means that different massive, affected person swimming pools of capital would possibly take in future provide, thus supporting larger costs over the long run.
Among the establishments, Kendrick highlights the State of Wisconsin Investment Board and the State of Michigan Department of the Treasury. However, he additionally factors to central banks as potential new individuals.
In the report, Kendrick references the Czech National Bank, which has considered allocating up to 5% of its €140 billion in reserves into bitcoin, and notes that the Swiss National Bank is within the early levels of considering the same transfer. These developments might additional bolster bitcoin’s legitimacy as a retailer of worth on par with extra conventional asset lessons.
“As institutional access to bitcoin improves and volatility declines, we expect more portfolios to migrate towards their optimal level from an underweight Bitcoin starting point,” Kendrick concluded.
At press time, BTC traded at $95,581.
Featured picture created with DALL.E, chart from TradingView.com
