Sovereign Wealth Funds Set to Surge into Bitcoin

Standard Chartered, a leading international bank, has predicted a surge in wealth funds buying Bitcoin, as more institutions show interest in cryptocurrency. This forecast comes as recent filings and investments suggest a shift toward wider use of Bitcoin.

Geoffrey Kendrick, the head of foreign exchange research at Standard Chartered, believes that more sovereign wealth funds will start buying Bitcoin. This expectation is bolstered by Abu Dhabi's recent investment in BlackRock's Bitcoin exchange-traded fund (ETF), reflecting the region's growing interest in digital assets. Kendrick believes these actions will likely encourage other sovereign wealth funds worldwide to explore Bitcoin as it becomes more popular as an alternative investment.

Kendrick also affirmed that more state pension funds and institutional investors will soon invest in Bitcoin. Standard Chartered believes Bitcoin could reach $500,000 by 2028, as these large investors join the market, making Bitcoin a key part of the global financial system.

Earlier in the year, Kendrick suggested purchasing Bitcoin during its slump, driven by its correlation with the Nasdaq. Despite short-term price fluctuations and shifting market sentiment, Bitcoin's inherent value proposition remains intact. Kendrick's optimism is also rooted in Bitcoin's fundamentals, which remain strong. Several nations, including El Salvador, have incorporated Bitcoin as a strategic reserve.

Last year, Standard Chartered announced plans to launch a cryptocurrency trading desk targeting Bitcoin and Ethereum (ETH). This strategic move signifies the bank's commitment to integrating digital assets into its portfolio. By setting up a trading desk for these digital assets, Standard Chartered became one of the first global banks to adopt a crypto strategy through spot digital asset trading. Other major banks and financial firms have also begun exploring cryptocurrency trading and investment opportunities, driven by increasing client interest and the potential for significant returns.