Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, has reiterated his bullish price prediction for Bitcoin. He anticipates BTC reaching $500,000 by 2028, citing evidence of growing interest from institutional investors, particularly from sovereign wealth funds, state pension funds, and other large-scale players.
Sovereign Wealth Funds Enter The Bitcoin Fray
A recent report from Standard Chartered, referenced by The Block, highlights Kendrick’s observation of increasing interest in Bitcoin from government-backed investment entities. This perspective is bolstered by Abu Dhabi’s recent announcement of a position equivalent to 4,700 BTC in BlackRock’s iShares Bitcoin Trust (IBIT) through its sovereign wealth fund.
“Although this is modest for the moment, we anticipate that the size will grow over time, and indeed, other sovereign entities are likely to follow suit,” Kendrick detailed in the Tuesday report. He emphasized that Abu Dhabi’s initiative signals a strategic shift, potentially prompting further engagement from other sovereign wealth funds aiming to diversify their holdings with BTC.
Kendrick’s optimism is partly grounded in Form 13F filings — quarterly reports that institutional asset managers handling at least $100 million must submit to the US Securities and Exchange Commission. Upon analyzing data from Q4 2024, Kendrick identified a noteworthy trend.
“The 13F filings for Q4 indicate that this process is underway…It is happening,” he communicated via email to The Block. Standard Chartered’s analysis revealed that, although hedge funds continued to lead in Bitcoin acquisitions, banks, which started buying in Q3 of last year, also increased their positions.
Kendrick drew comparisons between an earlier phase of Bitcoin’s market development, dominated by retail investors, and the recent trend where hedge funds have begun to participate through exchange-traded funds (ETFs). The focus is now expanding to include state investment managers and central banks.
“This gives us confidence to assert that even if purchases by Strategy… [formerly MicroStrategy] slow down considerably (it has acquired an impressive 227k BTC since the US election, accounting for more than 1% of the existing supply), we believe other buyers are poised to step in,” Kendrick remarked.
The reference to MicroStrategy signifies the impact a single private company’s Bitcoin holdings can have. However, Standard Chartered’s analysis suggests that other significant, patient capital pools may absorb future supply, thereby supporting sustained price increases in the long run.
Among the institutions Kendrick points to are the State of Wisconsin Investment Board and the State of Michigan Department of the Treasury. He also highlights central banks as potential new entrants into the market.
In his report, Kendrick mentions the Czech National Bank, which is contemplating allocating up to 5% of its €140 billion reserves into Bitcoin, and indicates that the Swiss National Bank is in the early phases of considering a similar strategy. These actions could strengthen Bitcoin’s status as a viable store of value comparable to traditional asset classes.
“As institutional access to Bitcoin improves and volatility diminishes, we foresee more portfolios adjusting towards their optimal allocation from an underweighted Bitcoin starting point,” Kendrick concluded.
As of press time, BTC was trading at $95,581.
