Geoffrey Kendrick, global head of digital asset research at Standard Chartered Bank, is one of the most optimistic cryptocurrency analysts on Wall Street. While cryptocurrencies have performed poorly in 2025 for several reasons, including economic and geopolitical uncertainty created by tariffs, Kendrick expects big gains in Bitcoin (BTC 0.40%) and XRP (XRP 1.15%) in the next two years.
- Kendrick says Bitcoin will hit $225,000 in 2027, implying 155% upside from its current price of $88,000.
- Kendrick says XRP will hit $10.40 in 2027, implying 455% upside from its current price of $1.87.
Here's what investors should know about these cryptocurrencies.
Image source: Getty Images.
The Trump administration has implemented pro-cryptocurrency policies
Geoffrey Kendrick views the favorable regulatory environment as a key tailwind for cryptocurrency. Earlier this year, President Trump created a working group to strengthen American leadership in digital financial technology, and he signed an executive order that created a strategic Bitcoin reserve and digital asset stockpile.
Additionally, Trump over the summer signed the Genius Act, which established a federal regulatory framework for stablecoins. He also selected crypto advocate Paul Atkins as chairman of the Securities and Exchange Commission (SEC). And the Clarity Act, which passed the House of Representatives in July, seeks to define which federal agencies have jurisdiction over different types of digital assets.
Finally, the SEC has formed its own crypto task force, and it rescinded Staff Accounting Bulletin (SAB) 121, a rule imposed under the Biden administration that forced financial institutions to treat custodied cryptocurrency as a balance sheet asset and liability, which raised reserve requirements. The rescission of SAB 121 should promote digital asset adoption by institutional investors, according to Kendrick.
The investment thesis for Bitcoin
Bitcoin treasury companies -- those whose core financial strategy involves holding a large amount of Bitcoin on their balance sheets -- have been a major source of demand. The best known and largest is Strategy (formerly MicroStrategy), which owns 671,268 BTC, but other companies have adopted a similar model.
However, Kendric believes Bitcoin treasury companies will be a less consequential source of demand in the future. Indeed, they may actually be a near-term headwind. Strategy CEO Phong Le said the company may sell Bitcoin if its mNAV (enterprise value divided by Bitcoin reserve value) falls below 1. Strategy's mNAV is currently 1.07, down from 1.7 in June.
Going forward, Kendrick expects spot Bitcoin exchange-traded funds (ETFs) to be the most important source of demand. Those investment products track the spot price of Bitcoin. They reduce friction by eliminating the hassle and high fees associated with traditional cryptocurrency exchanges, providing access to Bitcoin through traditional brokerage accounts.
The approval of spot Bitcoin ETFs has paved the way for institutional adoption, which is key to long-term price appreciation because institutional investors have nearly $150 trillion in assets under management (AUMs). "Institutions are embracing Bitcoin for its diversification, long-term growth, and improving regulatory clarity," State Street strategists wrote in December.
Importantly, Bitcoin is currently 30% off its high, and big drawdowns have historically been excellent buying opportunities for patient investors. Morgan Stanley recommends investors with a high risk tolerance limit cryptocurrency exposure to 4% of their portfolio, while those with a mild risk tolerance should draw the line at 2%. Those rules are reasonable.
CRYPTO: BTC
Key Data Points
The investment thesis for XRP
XRP is the native cryptocurrency of the XRP Ledger, a blockchain that supports faster and cheaper cross-border transactions than the SWIFT system, the industry standard for wire transfers. Importantly, fintech company Ripple uses XRP to help financial institutions send money, and CEO Brad Garlinghouse thinks XRP will capture 14% of SWIFT's volume within five years.
In that scenario, XRP would facilitate over $20 trillion in transactions annually, and that tidal wave of demand would cause its price to soar. But I doubt XRP will come close to that figure. Very few financial institutions use XRP as a bridge currency for cross-border payments because it makes no sense to move money with a volatile cryptocurrency when stablecoins exist.
Ripple has addressed that issue by introducing a stablecoin, Ripple USD, but it competes with far more established options like USDT (from Tether) and USDC (from Circle Internet Group). Ripple USD payments would incur fees denominated in XRP, meaning its adoption would boost XRP demand. But XRP transaction volume has decreased since Ripple USD was launched in December 2024, which suggests neither coin is gaining much traction.
The most compelling investment thesis for XRP is that the recent approval of spot XRP ETFs could unlock demand among institutional investors and retail investors. Indeed, since the first spot XRP ETF was approved in November, AUM has exceeded $1 billion. That falls far short of the $33 billion in AUM spot Bitcoin ETFs accumulated in their first month, but it still points to modest demand.
Here's the bottom line: I would prioritize Bitcoin over XRP. In fact, I would buy stock in Circle Internet Group (the issuer of USDC) before I bought XRP. While I think Kendrick could be correct about Bitcoin increasing 155% by 2027, I think his XRP target price is much too high.
