Sovereign entities choose indirect exposure to Bitcoin through strategy to overcome restrictions - Stanchart
Sovereign wealth funds and government institutions are increasingly choosing to gain exposure to Bitcoin (BTC) through the strategy (MSTR) instead of BTC Exchange-Traded Funds (ETFs), according to the head of digital asset research at Standard Chartered, Geoffrey Kendrick. In a report for investors published on May 20, Kendrick said regulatory filings show that increased MSTR holdings drove the bulk of sovereign Bitcoin accumulation during the last quarter, even as direct ETF activity remained generally flat. The filings confirm speculation that sovereign interest in Bitcoin is growing each quarter, with countries starting to build exposure in different ways. Indirect exposure is on the rise. Kendrick noted that while headlines focused on the exit of the equivalent ETF in Wisconsin with 3,400 BTC, the real momentum came from governments and public institutions buying shares in the strategy, which now holds 576,230 BTC. Regulatory filings reveal that Norway, Switzerland, and South Korea were among the most active buyers of MSTR during the first quarter, collectively adding more than 1,600 BTC equivalent exposure through MSTR shares. In the United States, pension funds in California, New York, and North Carolina added the equivalent of 1,000 BTC via MSTR. This contrasts with Wisconsin, which divested its ETF exposure. Meanwhile, Abu Dhabi increased its direct exposure from ETF by 300 BTC, bringing it to 5,000 BTC, and the central bank of Saudi Arabia made its first-ever appearance with a small allocation. Kendrick said that 13F filing data shows institutional investors are increasingly using MSTR as a structural bridge in Bitcoin markets. He added that the appeal of the strategy lies in its unique position as a proxy for Bitcoin, especially for allocators constrained by operational or regulatory barriers to holding digital assets directly. Broader implications. Despite overall sovereign ETF positions remaining unchanged, offset by Wisconsin's exit, the benchmark measurement indicates the net increase in MSTR exposure as a bullish signal. The moves align with the bank's long-held view that Bitcoin could reach $150,000 under broader institutional integration by the end of this year and $500,000 by the end of President Donald Trump's current term in 2028. Standard Chartered stated in its report: "The latest 13F data... supports our core thesis that Bitcoin (BTC) will reach $500,000 before Trump leaves office as it attracts a wide range of institutional buyers." The report also noted that ETF and MSTR positions have now surpassed 100,000 BTC in combined quarterly holdings, reinforcing Bitcoin's growing presence in traditional portfolios. As geopolitical uncertainty and inflation continue, sovereign entities appear to be experimenting with Bitcoin as a store of value, albeit cautiously and indirectly. Kendrick concluded the note by pointing out that the detail and diversity of filings linked to 13F Bitcoin "continue to improve," indicating deeper market penetration and data enrichment in future disclosures. Mentioned in this article: Published in: Bitcoin, Saudi Arabia, South Korea, Switzerland, UAE, USA, adoption, crypto, prominent, macro, Tradfi Latest Saudi Arabia stories
#Stanchart #strategy #exposure #sovereign #restrictions #entities #direct #choose #through #indirect #to_overcome #to_Bitcoin #from