Key Takeaways
- Standard Chartered expects sovereign wealth funds to buy bitcoin.
- Abu Dhabi's sovereign wealth fund holds 4,700 BTC in BlackRock's ETF.
- State pension funds and central banks may enter the bitcoin market.
After Abu Dhabi’s recent investment in BlackRock’s bitcoin ETF, Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, anticipates more sovereign wealth funds will enter the market.
Kendrick told The Block on Tuesday:
The 13F filings for Q4 show that process is underway… It is happening.
The 13F filings, required by the SEC for investment managers with over $100 million in assets, revealed Abu Dhabi’s sovereign wealth fund now holds a 4,700 BTC-equivalent position in BlackRock’s IBIT ETF.
While small, Kendrick expects this allocation to grow and for other sovereigns to follow.
Shifting ownership trends
Kendrick’s analysis of Q4 13F filings suggests a shift in bitcoin ownership trends.
Hedge funds dominated purchases, but banks showed strong buying interest starting in Q3.
He predicts the next phase will see participation from state pension funds, including the State of Wisconsin Investment Board and the State of Michigan Department of the Treasury.
Central bank interest
Additionally, central banks may join the market, with the Czech National Bank considering a bitcoin allocation of up to 5% of its €140 billion reserves and the Swiss National Bank in early discussions.
Future outlook
With institutional access improving and volatility decreasing, Kendrick believes portfolios will increasingly adjust toward higher bitcoin allocations.
