Standard Chartered: 'Bitcoin Could Reach $500,000 - Positive Outlook with Increasing Institutional and Sovereign Fund Inflows'

A forecast suggests that more institutional investors and sovereign wealth funds will purchase Bitcoin.

On the 18th (local time), Jeffrey Kendrick, Global Head of Crypto Research at Standard Chartered, revealed in an interview with The Block that 'Analysis of last quarter's US Securities Holdings Report (13F) indicates various types of large investors will purchase Bitcoin' and stated that 'Bitcoin could reach $500,000 by 2028.'

He explained that participation from various large institutions in purchasing strengthens the $500,000 Bitcoin price projection. Kendrick noted that 'In the fourth quarter of last year, institutional investors emerged as major Bitcoin buyers' and added that 'banks' Bitcoin purchases, which began in the third quarter, are also encouraging.'

He also explained that 'central banks could join in purchasing Bitcoin,' mentioning that the Czech Central Bank and Swiss National Bank are considering Bitcoin investments. He added that 'US state pension funds are also expected to invest in Bitcoin.'

He particularly predicted an expansion in Bitcoin purchases by sovereign wealth funds. He stated, 'The most significant point is that Abu Dhabi's sovereign wealth fund purchased spot Bitcoin ETFs' and added that 'while the current scale is small, they will gradually increase their holdings.' He further explained that 'eventually, other sovereign wealth funds will join in purchasing Bitcoin.'

Kendrick said, 'Considering these trends, even if Strategy doesn't purchase Bitcoin, other large investors are likely to buy Bitcoin,' and added that 'as institutional accessibility increases and Bitcoin's volatility decreases, more institutions will add Bitcoin to their portfolios.'

Meanwhile, Abu Dhabi's sovereign wealth fund has previously announced purchasing $437 million worth of BlackRock's spot Bitcoin ETF (IBIT) in the first quarter of this year.