A new report from Standard Chartered Bank revealed the growth of indirect sovereign exposure to Bitcoin through MSTR shares, which reinforces the bank's bullish expectations that the value of the digital currency will reach $500,000 by 2029.
According to the analysis, government entities and sovereign funds have started increasing their investments in MSTR, which holds the largest Bitcoin holdings among listed companies. The report mentioned that this step comes amid regulatory constraints preventing some countries from holding the digital currency directly.
Geoffrey Kendrick, head of digital asset research at Standard Chartered Bank, clarified that 'the data supports our hypothesis that Bitcoin will reach $500,000 before the end of President Donald Trump's term in 2029', adding that the increasing diversity in the investor base, including sovereign entities, strongly drives this trend.
Saudi Arabia and France appear for the first time on the list of MSTR shareholders
The report indicated that countries like Saudi Arabia and France entered the list of holders of MSTR shares for the first time during the first quarter of this year, a move that reflects the indirect expansion of sovereign investments in the digital asset market. Additionally, Mubadala in Abu Dhabi has increased its exposure equivalent to an investment in 5,000 Bitcoin.
Among the notable entities that have increased their holdings in MSTR are the Norwegian Government Pension Fund, the Swiss National Bank, and public funds in South Korea, along with pension funds in US states like California and New York, which added the equivalent of 1,000 Bitcoin to their portfolios.
Decline in direct investment in Bitcoin funds in favor of holdings through companies
In contrast, the data showed a notable slowdown in direct investment through Bitcoin exchange-traded funds, such as the complete exit of the Wisconsin state fund from one of those funds, equivalent to 3,400 Bitcoin. Kendrick sees this shift as indicative of an increasing preference for indirect holdings through companies like MSTR, especially in countries with strict regulatory constraints on digital currency holdings.
Growing expectations that Bitcoin will reach $500,000
Standard Chartered Bank bases its bullish predictions on the growth of institutional demand, decreasing volatility levels, and increasing capital flows towards digital assets. Kendrick confirmed that the market has entered a new phase of maturity, with Bitcoin becoming a macroeconomic hedging tool, rather than just a high-risk asset. He added, 'When institutions buy Bitcoin, prices tend to rise.'
Kendrick had previously raised his price forecast for Bitcoin by the end of 2025 to $200,000, up from his earlier estimates of only $120,000, driven by inflows of $5.3 billion over three weeks into US spot Bitcoin funds.
The bank noted that Bitcoin's role in institutional portfolios is expanding, and exposure to it is no longer only linked to technology companies or hedge funds, but now includes government entities seeking financial hedging and risk distribution amid geopolitical and economic changes.
