An increasing number of sovereign wealth funds are expected to invest in Bitcoin, according to The Block, citing analysts from Standard Chartered.
Interest from government entities in cryptocurrency is becoming more noticeable, says Geoffrey Kendrick, head of digital asset research at Standard Chartered. He notes that the investment by Abu Dhabi’s sovereign fund in BlackRock’s spot Bitcoin ETF is one of the first signs of this emerging trend.
Kendrick added that in the fourth quarter of 2024, according to 13F reports from the U.S. Securities and Exchange Commission, hedge funds were the leading buyers of Bitcoin, but banks also increased their purchase volumes. The expert maintains his price forecast for the leading cryptocurrency at $500,000 by 2028.
Kendrick stated that in the long term, interest from government pension funds can be expected. Among potential future participants, he also mentioned central banks. As examples, he cited the national banks of the Czech Republic and Switzerland, which are considering investing reserves in Bitcoin.
According to the analyst, the growing interest from institutional investors is linked to the development of infrastructure for purchasing Bitcoin, as well as the decreasing volatility of the asset.
Earlier, experts from CryptoQuant warned of the risk of the leading cryptocurrency entering a bearish phase due to a decline in investors’ risk appetite.