Kendrick notes potential interest from the Czech National Bank, which may allocate up to 5% of its €140 billion reserves to Bitcoin, with the Swiss National Bank also considering similar investments.

The launch of exchange-traded funds (ETFs) in 2024 has improved access to Bitcoin, contributing to its growing market momentum.

While only a few pensions, such as those in Wisconsin and Michigan, have invested in Bitcoin, their involvement suggests the potential for greater institutional participation in the future.

Currently, state pension funds account for only 1% of Bitcoin ETF holdings, but Kendrick anticipates this figure will rise as institutional interest continues to grow.

MicroStrategy's significant holdings of 227,000 BTC, which represent over 1% of the total supply, highlight the influence of large institutional players on Bitcoin's demand.

For Bitcoin to mature as an asset, broader institutional adoption is crucial, transitioning from speculative trading to strategic long-term investments by entities like pension funds.

Changes in regulations, particularly the repeal of SAB 121, are expected to stimulate further institutional buying of Bitcoin, allowing banks to enter the market.

Bitcoin has started 2025 with notable volatility, yet it is witnessing a surge in interest from institutional investors.

As of mid-February 2025, Bitcoin is trading at approximately $95,581.

The trend of institutional accumulation is evident, with 499,000 BTC purchased through spot ETFs in 2024 and MicroStrategy acquiring 257,000 BTC.

Standard Chartered's Geoffrey Kendrick predicts that Bitcoin could reach $500,000 by the end of Donald Trump's current presidential term, driven by increasing institutional investment.

Kendrick compares the current institutional interest in Bitcoin to earlier phases dominated by retail investors, indicating a shift towards state managers and central banks.