Standard Chartered Insists on 500,000 Dollar for Bitcoin: They Explained the Reason!

Standard Chartered Bank noted the increasing indirect interest of governments and state institutions in Bitcoin in the first quarter of this year.

The bank stated that this increase occurred through MicroStrategy (MSTR) shares and supported its targets that Bitcoin will reach 500 thousand dollars by the year 2029.

In a report written by Geoffrey Kendrick, head of digital assets research at the bank, it stated, "The latest 13F data released by the U.S. Securities and Exchange Commission (SEC) supports our fundamental thesis that Bitcoin is being embraced by a wider base of institutional investors and that the price is expected to reach 500,000 dollars before President Donald Trump's term ends."

According to Kendrick, as more investors gain access to Bitcoin and volatility decreases, portfolios will optimize their low-weight positions against Bitcoin over time.

According to the 13F filings, which are mandatory reports submitted quarterly by institutional investors managing assets of $100 million or more in the US, the interest in direct Bitcoin ETFs has created a "disappointment," while the increasing interest in MicroStrategy shares has been considered "quite encouraging."

The most notable ETF movement occurred when the Wisconsin State Investment Board liquidated its entire position equivalent to 3,400 BTC in BlackRock's IBIT fund. This fund stands out as the most widely used Bitcoin ETF among state institutions. On the other hand, the Abu Dhabi-based semi-state institution Mubadala increased its IBIT assets from an equivalent of 4,700 BTC to 5,000 BTC.

However, the most striking development was the interest of governments in MSTR shares. According to Kendrick, some government agencies prefer indirect access to BTC through companies like MicroStrategy due to legal restrictions on direct Bitcoin purchases.

In the first quarter of 2024, the Norwegian Government Pension Fund, the Swiss National Bank, and South Korea's pension and investment institutions each added approximately 700 BTC equivalent of MSTR shares. In the U.S., the pension funds of the states of California, New York, North Carolina, and Kentucky collectively invested approximately 1,000 BTC equivalent. While Sweden and Liechtenstein showed small increases, France and Saudi Arabia also demonstrated indirect Bitcoin interest by acquiring MSTR shares for the first time, albeit in small amounts.

Kendrick said, "13F data shows that Bitcoin is attracting new types of institutional investors as a maturing market, which will contribute to the price reaching 500 thousand dollars. When institutions buy Bitcoin, prices generally rise."