Bitcoin to Hit $500K by 2028 as ETFs Ease Access, Volatility Drops: Standard Chartered

Bitcoin to Hit $500K by 2028 as ETFs Ease Access, Volatility Drops: Standard Chartered

Here's a more detailed and refined version of the article:

Standard Chartered Predicts Bitcoin Could Hit $500,000 by 2028 as Institutional Inflows Grow

By Francisco Rodrigues | Edited by Sheldon Reback
Feb 5, 2025, 4:31 p.m. UTC

Key Takeaways:

• Standard Chartered forecasts bitcoin's price could surge to $500,000 by 2028, driven by increased institutional participation and declining volatility.
• The bank anticipates gradual appreciation in bitcoin’s value while Donald Trump remains in office as U.S. president.
• Spot bitcoin ETFs are expected to see continuous inflows, strengthening BTC’s position as a key asset alongside gold.
• The bank’s end-of-2025 price target for bitcoin is $200,000, rising to $300,000 by 2026.
• Bitcoin is currently trading around $98,000, with the bitcoin-to-gold ratio reaching its lowest level since November 2024.

Bitcoin on Track for Unprecedented Growth

Standard Chartered projects that bitcoin (BTC) could experience a meteoric rise to $500,000 by 2028 as institutional adoption accelerates and volatility diminishes. The bank sees the continued development of the U.S. exchange-traded fund (ETF) market as a key driver of price stability, making BTC a more attractive investment vehicle for both institutional and retail investors.

Geoffrey Kendrick, the bank’s global head of digital assets research, highlighted in a note that the growing accessibility of bitcoin under the Trump administration is fostering greater institutional participation. As spot bitcoin ETFs mature, he expects bitcoin’s volatility to decline, further bolstering its role as a store of value and a hedge against economic uncertainty.

Institutional Demand and ETF Growth Fueling Price Surge

The increasing allocation of BTC in diversified portfolios—particularly in conjunction with gold—is seen as a significant factor contributing to bitcoin’s long-term appreciation. Kendrick emphasized that the optimal mix of bitcoin and gold in a two-asset portfolio is shifting, which “should lead to price appreciation longer-term as portfolios continue moving towards their optimal/logical state.”

With institutional inflows into bitcoin ETFs steadily increasing, the bank believes these factors alone could be sufficient to push BTC’s price to $500,000 before the end of Trump's presidency.

In the shorter term, Standard Chartered maintains a 2025 year-end target of $200,000 for bitcoin, with an expected increase to $300,000 by 2026.

Market Conditions and Bitcoin’s Role as a Safe-Haven Asset

As of now, bitcoin is trading around $98,000, showing resilience despite global economic uncertainties. Meanwhile, the bitcoin-to-gold ratio has recently dropped to its lowest level since mid-November 2024, influenced by a surge in gold prices amid heightened concerns over a U.S.-China trade war and increased Chinese demand for the precious metal.

With its diminishing volatility and growing institutional presence, bitcoin is increasingly being viewed as a complementary asset to gold, reinforcing its position as a hedge against traditional financial risks.

Conclusion

Standard Chartered’s bold prediction underscores the rapidly evolving landscape of bitcoin adoption. If institutional inflows into bitcoin ETFs continue to rise and volatility declines as expected, BTC could be on a trajectory toward unprecedented price levels—potentially reaching the half-million-dollar mark by 2028.