Standard Chartered maintained its $500,000 Bitcoin price target, citing an evolving investor landscape that includes institutional, bank, and now sovereign buyers.
The bank believes Bitcoin can reach this level before former U.S. President Donald Trump leaves office, driven by increased access and reduced volatility.
According to Standard Chartered (OTC:SCBFF), spot Bitcoin ETFs saw 499,000 BTC of buying in 2024, while MicroStrategy (MSTR) purchased 257,000 BTC.
The bank expects even larger institutional inflows in 2025 but notes that new buyers will be essential to sustain momentum.
“To achieve that, we need new buyers; bank buying has been large and now sovereigns have joined in too,” analysts wrote.
A key factor underpinning the bank’s bullish stance is said to be data from the SEC’s 13F filings, which track institutional investment.
The latest filings reveal that while hedge funds dominated Q4 Bitcoin buying, banks also increased their positions.
More significantly, Standard Chartered said Abu Dhabi’s sovereign wealth fund disclosed a 4,700 BTC equivalent position in BlackRock’s IBIT ETF, signaling potential further sovereign interest.
“The type of buyer will gradually evolve, from predominantly retail buyers pre-ETFs, to hedge funds in the early ETF period and eventually to sovereigns,” Standard Chartered noted.
They believe the shift could offset any slowdown in MicroStrategy’s aggressive purchases, which have accounted for over 1% of Bitcoin’s total supply since the U.S. election.
Looking ahead, Standard Chartered expects long-term institutional investors, including pension funds and central banks, to enter the market. They note that the Czech National Bank is reportedly considering a €7 billion allocation to Bitcoin, while the Swiss National Bank is in early stages of Bitcoin ownership.
