With the asset class expected to surge in value in the coming years, so to will the entities who invest in it. According to Standard Chartered, the number of sovereign wealth funds investing in Bitcoin is expected to continue increasing. Indeed, the $870 billion asset manager forecasts the trend will be a driving force of its $500,000 projection for BTC by 2028.
The statement follows Abu Dhabi’s sovereign wealth fund recently investing in BlackRock’s iShares Bitcoin Trust (IBIT) ETF. They were certainly not alone, as they joined a handful of similar wealth funds that have invested in the asset class through exchange-traded products. It appears as though the ongoing trend is one that analysts expect to grow.
JUST IN: $870 billion asset manager Standard Chartered expects more sovereign wealth funds to start buying Bitcoin.
— Watcher.Guru (@WatcherGuru) February 18, 2025
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Standard Chartered Expects Foreign Wealth Funds to Buy More Bitcoin
The last several years have seen unprecedented growth hit the digital asset sector. Bitcoin specifically has driven the surge in adoption and prominence. In 2024, the asset class reached a six-figure price for the first time, while showing that its future is as bright as it has ever been.
That is likely to spur even more involvement in the asset class in the coming years. According to one asset manager, it will see governments get increasingly involved. Specifically, Standard Chartered has said they expect sovereign wealth funds to begin buying Bitcoin.
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The $870 billion asset manager’s global head of digital asset research, Geoffrey Kendrick, expects the trend to begin showing itself in the near term. “The 13F filings for Q4 show that process is underway,” Kendrick told The Block. “It is happening.”
Abu Dhabi recently invested in BlackRock’s Bitcoin ETF, but they aren’t the only sovereign wealth fund embracing the leading cryptocurrency. Indeed, Norway, Singapore, Saudi Arabia, and Canada have all invested in Bitcoin through sovereign wealth funds.
With US President Donald Trump signing an executive order to create the United States’ first sovereign wealth fund, many expect the country to be next. Trump’s affinity for the asset class cannot be understated. If he opts to address a BTC reserve, it could only further the asset’s price trajectory. Indeed, Standard Chartered believes it will target $500,000 before Trump’s second term is through.