Government-Backed Funds Expanding MSTR Holdings Show Rising BTC Demand: Standard Chartered

Government entities are increasingly embracing Bitcoin exposure, albeit indirectly in some cases, through investments in MicroStrategy (MSTR), a publicly traded company with significant Bitcoin holdings. This strategic move is highlighted in a recent Standard Chartered research report analyzing SEC 13F filings. The report reveals a notable increase in MSTR holdings across various global government entities during the first quarter of the year.

Several significant government pension funds and central banks expanded their MSTR positions. Norway’s Government Pension Fund and the Swiss National Bank (SNB) each boosted their holdings by the equivalent of 700 Bitcoin. South Korea’s National Pension Service and Korea Investment Corporation collectively added another 700 Bitcoin-equivalent to their MSTR investments. U.S. state retirement funds, including those of California, New York, and North Carolina, significantly increased their exposure, adding a combined 1,000 Bitcoin-equivalent to their portfolios.

Further bolstering this trend, the AP Funds in Sweden and Landesbank in Liechtenstein made modest increases to their existing MSTR holdings. Furthermore, France’s Caisse des Dépôts et Consignations (CDC) and the Saudi Central Bank entered the scene, establishing initial, albeit smaller, positions in MSTR. This diversification among government entities suggests a growing acceptance of Bitcoin as a viable asset class, even in jurisdictions where direct Bitcoin ownership may be restricted. The strategy of using MSTR as a proxy for Bitcoin exposure appears increasingly attractive to government investors.

Conversely, the report notes that direct Bitcoin ETF holdings data proved disappointing in the first quarter. Despite this, Standard Chartered maintains its bullish outlook on Bitcoin, predicting a price surge to $500,000 before the end of President Trump’s potential future term. This prediction is based on the bank’s belief that continued institutional adoption, evidenced by government investments in MSTR, will drive Bitcoin’s value significantly higher. The increasing involvement of government entities, circumventing regulatory hurdles through MSTR, is seen as a key factor in supporting this optimistic forecast. MicroStrategy’s pioneering “Bitcoin treasury” model continues to attract institutional interest and serves as a vehicle for indirect Bitcoin exposure for numerous entities globally.