19.02.2025 10:44
Standard Chartered analyst Geoffrey Kendrick predicts that more sovereign wealth funds will enter the cryptocurrency market following Abu Dhabi's investment in BlackRock's Bitcoin ETF. This development indicates that institutional investors' interest in Bitcoin is expected to grow.
Corporate Bitcoin investments are gaining a new dimension. Geoffrey Kendrick, the global head of digital asset research at Standard Chartered, considers the Abu Dhabi sovereign wealth fund's initiation of Bitcoin investment through an ETF, alongside hedge funds and banks in Q4, as a strong indicator of corporate adoption.
Bitcoin Adoption Has Reached a New Level
The Abu Dhabi sovereign wealth fund taking a position equivalent to 4,700 BTC in Blackrock's IBIT ETF signals a transformation in the market.
According to Standard Chartered's analysis, while hedge funds continue to dominate in Q4 data, bank purchases are also showing a strong trend. Kendrick expects the Abu Dhabi position to increase over time and for other sovereign wealth funds to begin investing in Bitcoin as well.
The Czech National Bank considering a Bitcoin allocation of up to 5% of its €140 billion reserves and the Swiss National Bank starting to evaluate Bitcoin investment indicate that central banks may also join this trend.
As corporate access to Bitcoin becomes easier and volatility decreases, portfolios are expected to move towards optimal Bitcoin levels. In light of these developments, Kendrick maintains his forecast that Bitcoin could reach $500,000 by 2028.